Ripple’s expanding role in regulated payment infrastructure could translate into increased real-world XRP demand, according to a new institutional report by Amplify ETFs. The assessment suggests XRP’s utility is increasingly tied to payment usage rather than speculative trading.
The findings were highlighted by WrathofKahneman (WoK), a prominent XRP community analyst, who shared insights from Amplify ETFs’ December 2025 Digital Assets Monthly report.
According to WoK, the report presents a notably bullish outlook on Ripple’s progress, especially its collaboration with Mastercard.
Amplify ETFs argues that Ripple’s regulatory positioning gives it a competitive edge over blockchain payment solutions built on Ethereum and Solana.
While rivals continue to test experimental payment rails, Ripple’s alignment with existing financial frameworks allows it to move faster toward real institutional adoption.
Ripple–Mastercard Pilot Signals Institutional Confidence
At the centre of the report is a payment settlement pilot launched on November 6, 2025, involving Ripple, Mastercard, WebBank, and Gemini.
The initiative explores settling fiat-based credit card transactions using RLUSD, Ripple’s U.S. dollar-backed stablecoin, on the XRP Ledger (XRPL).
WebBank’s role as the regulated U.S. issuing bank places the pilot firmly within established compliance and fiduciary standards.
Amplify ETFs notes that this level of regulatory structure remains uncommon among public blockchain integrations and could serve as a blueprint for future payment infrastructure upgrades.
Although RLUSD is used for settlement, the report emphasizes that XRP remains central to the XRPL ecosystem. XRP secures the network, pays transaction fees, and supports liquidity through on-ledger mechanisms, including automated market makers.
Regulatory Momentum Strengthens XRP’s Utility Case
The report also highlights Ripple’s growing regulatory momentum. Amplify ETFs points to Ripple’s provisional bank licensing approval from the U.S. Office of the Comptroller of the Currency (OCC) as a key signal of rising institutional trust.
This confidence was further reinforced in November when Ripple completed a $500 million funding round at a $40 billion valuation, backed by major firms such as Citadel Securities and Fortress Investment Group.
Why Payment Volume Matters for XRP Demand
According to Amplify ETFs, rising settlement activity on XRPL could generate organic demand for XRP, driven by actual payment usage rather than market speculation.
If the pilot expands to include merchant settlements, loyalty programs, or broader payment flows, XRP’s role would scale alongside transaction volume.
The report argues that this usage-driven model ties XRP’s value more closely to network activity and institutional adoption. As payment throughput increases, demand for XRP to support network operations and liquidity is expected to rise.
Amplify concludes that Ripple’s role in regulated payments is no longer theoretical. With compliance-focused pilots moving from testing to scaling, the report suggests XRP could benefit from a structural demand shift directly linked to real financial activity. Likewise, several experts suggest that the introduction of XRP into decentralized finance (DeFi) could trigger a supply shock for the crypto asset.
