Financial Expert Says This Move By JPMorgan Validates XRP As A Legitimate Asset | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Market expert Paul Barron has commented on JPMorgan’s potential move to offer crypto-backed loans. The analyst further noted how this development provides more legitimacy to XRP as an asset class

How JPMorgan’s Move Is “Massive” For XRP

In an X post, Paul Barron noted that JPMorgan, which boasts $4.3 trillion in assets under management (AuM), is considering crypto-backed loans. He declared that this is a huge validation for XRP, ETH, and BTC as legitimate collateral assets. The expert added that when the world’s largest bank recognizes crypto’s value as loan backing, then the market is witnessing the bridge between TradFi and DeFi.

Related Reading: Ripple Won’t Dump Its XRP Escrow Holdings: Lawyer Reveals Why It’s Actually Good For PriceJPmorgan reportedly plans to roll out this credit service by 2026, in which it will start lending directly against these major crypto assets. Although the bank is initially focusing on Bitcoin and Ethereum, XRP could also become an option at some point. The altcoin is currently the third-largest crypto by market cap, which makes it the next suitable option after BTC and ETH

Such a move for XRP would be massive, considering it could lead to greater adoption among traditional finance clients who want to access JPMorgan’s credit services. Meanwhile, it is worth noting that the altcoin’s potential is well known to the bank, as they commented earlier this year on the potential inflows the XRP ETFs could attract

The banking giant predicted that the XRP ETFs could attract between $4 billion and $8 billion in their first year, based on the altcoin’s market cap of $146 billion at the time. However, XRP’s market cap has since surged, topping $200 million recently. As such, these ETFs could even witness higher inflows as they potentially get approved this year

XRP Already In The TradFi Space Through Ripple

Ahead of JPMorgan’s potential approval of XRP as collateral, it is worth noting that the altcoin is already in the traditional finance (TradFi) space, thanks to Ripple’s operations. The altcoin is even set to enjoy greater adoption thanks to Ripple’s application for a national banking license. A banking license would expand the firm’s payment operations, of which XRP plays a crucial role.

Related Reading: ‘XRP Is The End Game’ — Pundit Reveals Why It’s Better Than BitcoinThe approval of Ripple’s application still hangs in the balance, as U.S. banking associations have urged the Office of the Comptroller of the Currency (OCC) to delay its approval. Pro-XRP lawyer John Deaton has, however, come to Ripple’s defense

In an X post, he called on Treasury Secretary Scott Bessent and White House Officials David Sacks and Bo Hines to intervene and caution the banking associations, which are opposed to the banking license being granted

At the time of writing, the XRP price is trading at around $3.12, down over 10% in the last 24 hours, according to data from CoinMarketCap.

XRP trading at $3.09 on the 1D chart | Source: XRPUSDT on Tradingview.comFeatured image from Getty Images, chart from Tradingview.com Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.