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- Corporate treasuries face mounting FX costs and seek faster, cheaper solutions.
- XRP could enable instant cross-border settlements and lower hedging risks.
- Analysts suggest XRP could hit $25–$120 if widely adopted for FX hedging.
As global corporations grapple with volatile exchange rates, the idea of using XRP for foreign exchange (FX) hedging is gaining quiet traction. With trillions in cross-border flows at stake, even a modest shift by corporate treasuries could reshape the XRP market—and perhaps the broader crypto landscape
The Growing Pressure of FX Risk
Foreign exchange risk management has become a core concern for multinational firms. According to Milltech’s 2025 data, 86% of European and 82% of North American corporations hedge their FX exposure, primarily using forwards, options, and swaps. Yet, these tools remain costly and slow, especially in emerging markets.
Traditional methods also leave gaps. Despite trillions in hedgeable U.S. dollar assets, nearly half of global exposures remain unhedged. As firms seek cheaper, faster solutions, blockchain-based settlement networks like RippleNet are catching attention.
How XRP Could Change Treasury Operations
In theory, corporate treasuries could allocate 5–10% of their idle cash into XRP and use Ripple’s network for real-time currency conversions. Transactions settle in seconds and cost a fraction of traditional bank fees.
This model would allow companies to move foreign receivables through XRP, convert them instantly, and eliminate exposure windows that typically last days. The speed and liquidity advantages could reduce FX costs significantly—if volatility risks are managed effectively.
However, XRP’s annualized volatility of 50–100% remains a key obstacle. While it may not replace conventional hedging tools yet, its utility as a liquidity bridge makes it an appealing complement for global treasury operations.
The Potential XRP Price Impact
If corporations began routing even a fraction of their FX hedging through XRP, the market impact could be explosive. According to estimates from Google’s Gemini AI, participation in just $200 billion of annual hedging flows could lift XRP’s market cap from $153 billion to over $1.5 trillion—pushing prices toward $25 per token.
In a more aggressive adoption scenario, combined with institutional inflows and ETF approvals, Gemini projects XRP could trade between $90 and $120, placing it among the world’s largest financial assets.
While adoption remains hypothetical, the concept of XRP-powered FX hedging shows how blockchain could modernize corporate treasury management. If even a few global firms test this approach, the ripple effect—both figuratively and literally—could be massive.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: XRP Eyes $2.25 Support Amid Fading Momentum: Key Levels to Watch
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
