Key Points
- XRP Despite facing the expansion of Ripple in October, it still fell by about 16%
- Ripple has received final approval from its U.S. National Trust Bank
- Institutional cooperation does not necessarily directly create demand for XRP.
At the end of October, Ripple experienced one of its strongest months for institutional business expansion: the company received final approval for its banking operations in the United States, announced partnerships with several major financial firms, and projected that its products' annualized revenue run rate would reach $900 million. However, the cryptocurrency XRP associated with its ecosystem saw a decline of about 16% that month.
Historical market data shows that XRP fell from around $1.49 at the end of September to $1.25 on October 31. This round of selling pushed the token's cumulative decline in 2026 to approximately 32%, despite Ripple having expanded into areas such as banking, custody, stablecoins, and corporate financial management.
According to the institutional business update released by Ripple on October 28th, the company currently serves over 1,700 institutional clients, and it is expected that by the end of the year, the annualized revenue from its products will approach 900 million US dollars.
Ripple Approved by Bank of America and Expands Wall Street Partnerships
On October 26th, after obtaining conditional authorization in December 2025, Ripple further gained final approval from the Federal Reserve Board of the United States (Office of the Comptroller of the Currency), and established Ripple National Trust Bank.
Once this federally regulated trust bank is operational, it will manage the reserves that support Ripple USD, act as a trustee for collateral, and provide digital asset custody services with fiduciary responsibilities.
Unlike traditional commercial banks, this institution does not provide traditional services such as accepting deposits or issuing loans. Its main responsibility is to strengthen the Ripple regulated financial infrastructure.
This approval comes at a time when Ripple is further expanding its business on Wall Street, with the expansion involving banks, investment companies, and institutional trading platforms.
Ripple has also expanded its cooperation with Bank of New York Mellon (BNY), which has incorporated the custody of XRP and RLUSD into its digital asset platform.
In addition, Robinhood has announced plans to integrate RLUSD into its retail applications, which could extend the reach of related products to a platform that boasts 28.6 million funded customers.
The collaboration between Ripple and C2FO focuses on invoice financing, with RLUSD using XRP Ledger to settle payments to approved suppliers.
Why has the business growth of Ripple failed to boost XRP?
The core difference lies in that Ripple, XRP, and XRP Ledger are economically interrelated, but they cannot replace each other.
Ripple generates income through financial services, including payments, custody, financial management, and institutional transactions. XRP holders do not possess equity in Ripple nor do they directly benefit from its income.
The company stated that its institutional revenue has grown rapidly, and by the end of October, the market value of RLUSD had reached approximately $2.6 billion.
However, the adoption of stablecoins does not require institutions to buy an equal amount of XRP.
Transactions conducted on XRP Ledger incur a small amount of XRP as network fees, and certain operations also require a reserve in the account. However, the volume of transactions alone is not sufficient to generate a significant demand for XRP as an investment asset.
At the same time, the figure of $16 trillion more broadly mentioned by Ripple refers to the transaction volume facilitated through its products by 2025, and not the total payment amount settled using XRP.
This difference helps to explain why positive corporate announcements occur simultaneously with the decline in cryptocurrency prices.
