XRP Declines Nearly Half Amid Ripple's $2.7 Billion Expansion Despite Market Challenges
December 26, 2025
Finance

XRP Declines Nearly Half Amid Ripple's $2.7 Billion Expansion Despite Market Challenges

Significant Investments in Financial Infrastructure Coincide with Downward Price Trends for XRP in 2025

Summary

Despite Ripple Labs investing approximately $2.7 billion in 2025 to enhance its financial ecosystem—including acquisitions and stablecoin rollout—XRP's market price has experienced a 48% drop from its July peak. Key company developments during the year include regulatory settlement affirmations, strategic acquisitions building a multi-faceted financial platform, the launch and growth of RLUSD stablecoin, introduction of XRP-based ETFs, and preparations for native lending features on the XRP Ledger.

Key Points

XRP's price declined 48% from its July 2025 peak of $3.65 by year's end, despite major company investments.
Ripple Labs settled a four-year legal battle with the U.S. SEC in 2025, confirming a ruling that separated institutional from retail XRP sales, reducing regulatory uncertainty.
Ripple deployed about $2.7 billion in acquisitions, including Hidden Road (now Ripple Prime) and GTreasury, enhancing its institutional financial platform capabilities.
The RLUSD stablecoin launched in late 2024 and grew to a $1.3 billion market cap by the end of 2025, ranking as the 11th largest stablecoin.
XRP ETFs debuted with strong inflows, surpassing $1.25 billion in assets under management and marking rapid adoption within the cryptocurrency ETF market.
Ripple plans to introduce native lending on the XRP Ledger in 2026, targeting institutional decentralized finance applications.
RippleNet expanded to over 300 banks and financial institutions, underlining the growth of Ripple's payment network.
Ripple raised $500 million in November 2025 at a $40 billion valuation, reflecting investor confidence in its strategy despite XRP's price decline.

In 2025, XRP experienced a notable market price decline, shedding nearly half of its value since peaking at $3.65 in July, with a decrease of 48% recorded by year's end. This price movement occurs alongside Ripple Labs' substantial strategic investments aimed at expanding its financial services platform and broader ecosystem.

The company's transformation accelerated following the resolution of an extended legal dispute with the U.S. Securities and Exchange Commission (SEC). In August, both parties agreed to drop their pending appeals, thereby solidifying a 2023 judicial decision that distinctly categorized institutional XRP sales separately from retail transactions. This development alleviated a prolonged regulatory burden that had constrained Ripple's business growth since 2020. Additionally, this settlement aligned with a broader shift toward a regulatory environment perceived to be more receptive to cryptocurrency under the current U.S. administration.

Ripple's investment approach in 2025 primarily involved using approximately $2.7 billion to acquire companies and infrastructure, focusing on building a comprehensive financial platform rather than directly influencing XRP's price. In April, Ripple completed a $1.25 billion acquisition of Hidden Road, subsequently rebranding it as Ripple Prime. This acquisition positioned Ripple as the first cryptocurrency firm to own a global multi-asset prime brokerage, a move instrumental in expanding its institutional services. Following integration, Ripple Prime reports indicate its business tripled in scale.

Further enhancing its enterprise capabilities, Ripple acquired GTreasury in October for $1 billion. This addition provided Ripple with access to Fortune 500 clients such as American Airlines Group Inc., Goodyear Tire & Rubber Co., and Volvo AB, along with a significant presence in payment flows exceeding $12.5 trillion annually. Smaller acquisitions complemented these large deals, including the $200 million purchase of Rail in August and the wallet provider Palisade. Collectively, these moves signify Ripple's strategic shift from primarily payment processing toward a more encompassing role in financial services.

Alongside acquisitions, Ripple launched the RLUSD stablecoin—a U.S. dollar-backed digital currency—in December 2024, with momentum building throughout 2025. By the end of the year, RLUSD attained a market capitalization of approximately $1.3 billion, ranking as the 11th largest stablecoin worldwide despite its relative youth. RLUSD's growth was supported by key integrations such as a partnership with Mastercard Inc. for credit card settlements, as well as securing regulatory approval in Singapore. Late in the year, Ripple also received conditional approval for a National Bank Charter from the U.S. Office of the Comptroller of the Currency, facilitating reserve holdings at Bank of New York Mellon Corp.

In the area of market offerings, XRP entered the exchange-traded fund (ETF) landscape in 2025. The initial ETFs for XRP were launched by Rex Shares and Osprey Funds, attracting $38 million in volume on their first day. This was followed by spot ETFs from established financial entities including Canary Capital, Grayscale, Bitwise, and Franklin Templeton. By mid-December, XRP spot ETFs experienced nearly $1 billion in net inflows without any days of outflows, and assets under management surpassed $1.25 billion by late December. Notably, XRP achieved the distinction of being the fastest cryptocurrency to reach a $1 billion ETF asset milestone, surpassing Ethereum's comparable ETF launch performance. However, this substantial institutional demand did not translate into a corresponding increase in XRP's market price.

Looking toward 2026, Ripple announced plans to implement native lending capabilities on the XRP Ledger through the release of XRPL Version 3.0.0. These amendments are anticipated to gain validator approval by late January 2026 and will enable market makers to borrow XRP or RLUSD, while enabling holders to generate yield by lending to credit facilities. This development represents a significant step in expanding XRP Ledger’s utility beyond payments into institutional-grade decentralized finance (DeFi) applications.

RippleNet, the company's payment network, also expanded its reach throughout 2025, including over 300 banks and financial institutions by November. Furthermore, in the same month, Ripple successfully raised $500 million from global investors, valuing the company at approximately $40 billion. According to CEO Brad Garlinghouse, this fundraising effort serves as a strong endorsement of Ripple’s long-term strategic vision despite volatile XRP price trends.

Risks
  • XRP's significant price decline despite major strategic investments indicates potential challenges in market adoption or investor sentiment.
  • Regulatory uncertainties, although reduced, still pose risks to Ripple's operations and XRP's market performance.
  • The substantial capital outlay on acquisitions may pressure operational integration and generating expected returns.
  • The disconnect between ETF inflows and XRP price movement suggests market dynamics not fully aligned with institutional demand.
  • Expansion into broader financial services and DeFi introduces competitive risks and execution challenges.
  • The success of RLUSD stablecoin depends on regulatory compliance and broader acceptance in payment networks.
  • Native lending features awaiting validator approval may face delays impacting rollout and user adoption.
  • Ripple's high valuation from fundraising rounds increases market expectations and pressure for sustained growth outcomes.
Disclosure
This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own due diligence before making investment decisions.
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