Understanding the Purpose of XRP: Insights from an Expert

Crypto analyst Levi Rietveld recently highlighted the importance of XRP in a post on X, linking it to US Treasury Secretary Scott Bessent's remarks on evaluating regulatory obstacles in the blockchain and cryptocurrency sector. This article explores how XRP was designed to enhance payment systems and looks at its current role in the financial landscape amid evolving regulations.

Key Takeaways

XRP's Purpose: XRP was created to facilitate efficient transactions and improve payment systems.
Regulatory Improvements: The US government is working on redefining regulations around blockchain and cryptocurrency to better support these technologies.
Institutional Growth: 2025 has seen the approval of multiple Spot XRP ETFs, attracting significant institutional interest.
Ripple's Solutions: XRP serves as a bridge asset for banks, enabling easier foreign currency transactions.

XRP

What XRP Was Designed To Do

In his recent post on X, analyst Levi Rietveld emphasized that “$XRP is built for this” in reference to a video featuring Scott Bessent, the US Treasury Secretary. In this clip, Bessent discusses the need to review regulatory barriers that impact blockchain technology, stablecoins, and payment systems in the crypto industry.

Bessent asserted that officials will examine these regulatory challenges closely and contemplate reforms to optimize American capital markets. Importantly, this aligns with the increased focus on cryptocurrency fostered by the current U.S. administration under President Trump.

$XRP Is Built For This! pic.twitter.com/WNDUoeFPC4
— Levi | Crypto Crusaders (@LeviRietveld) December 22, 2025

The U.S. government's initiatives aim to modernize cryptocurrency regulations, establishing clearer frameworks for digital assets. An illustrative example is the Clarity Act, which seeks to precisely define the regulatory standing of digital assets and differentiate tokens used for payments from securities, creating well-defined oversight roles for entities like the SEC and CFTC.

Bessent’s insights zeroed in on enhancing payment systems and reducing friction associated with innovative financial technologies. Proponents of XRP, including Rietveld, argue that these objectives closely reflect the cryptocurrency’s foundational design and functionality.

XRPUSD now trading at $1.84. Chart: TradingView

The XRP Ledger enables seamless transactions with transparent settlement processes, predictable costs, and transaction finality independent of mining or complex smart contracts. Such features are essential for institutions seeking reliability and clarity.

XRP's practical application is particularly evident through payment solutions offered by Ripple. Banks and financial institutions can utilize XRP as an intermediary asset for settlements, minimizing the need to maintain sizable foreign currency reserves.

XRP’s Current Regulatory And Institutional Position

The push for clearer regulations has significantly bolstered XRP’s institutional framework. In 2025, several Spot XRP ETFs received approval, with initial figures showing over $1.14 billion in inflows. Bloomberg estimates indicate these funds could capture between $5 billion to $7 billion in institutional investments by 2026.

This development opens new opportunities for asset managers, pension funds, and other institutional investors to incorporate XRP into traditional investment portfolios. Such advances hinge on the regulatory clarity around blockchain, stablecoins, and payment systems that Bessent emphasizes.

Featured image from Unsplash, chart from TradingView