AI Models Suggest XRP Could Climb to $15–$22 With BIS Tier-1 Status

• Jake Claver suggests XRP moving closer to global bridge currency recognition status.
• Basel framework currently restricts banks to holding 1-2% crypto versus capital base.
• AI analysis estimates $15-22 price range if regulatory classification changes occur.

Digital Ascension Group CEO Jake Claver recently proposed that XRP may eventually earn recognition from the Bank for International Settlements as a premier banking asset. His X post sparked discussion about how regulatory reclassification could affect the token’s market valuation.

The suggestion arrives as institutional investors examine whether digital currencies can achieve parity with traditional safe-haven banking reserves. Current Basel banking regulations maintain strict separation between cryptocurrency holdings and the highest-quality capital categories.

Banking regulations maintain strict asset hierarchies

The Basel framework divides bank capital into distinct tiers based on stability and loss-absorption capacity. The top category encompasses cash held at central banks, sovereign debt from AAA to AA- rated nations, and physical gold stored in allocated vaults. These holdings face minimal capital charges and provide maximum balance sheet strength during market turbulence.

Common Equity Tier-1 requires banks to maintain 4.5% minimum ratios against risk-weighted exposures. This category comprises shareholder equity, accumulated profits, and disclosed reserve accounts. Additional qualifying instruments include convertible securities that transform into equity during distress periods.

Digital assets currently occupy a separate regulatory space. BIS guidelines partition cryptocurrencies into two distinct groupings based on backing mechanisms and stability characteristics.

Crypto assets face restrictive capital treatment

The first grouping encompasses tokenized representations of tangible assets and stablecoins meeting rigorous collateral and redemption standards. Banks may apply similar risk weights as the underlying reference assets. Algorithmic stablecoins fail to meet these criteria.

The second grouping contains all non-collateralized digital currencies including XRP, Bitcoin, and Ethereum. These face maximum capital penalties under Basel standards. Financial institutions can allocate only 1-2% of their tier-one capital base toward such holdings under current guidelines.

This restrictive treatment stems from volatility concerns and lack of government backing. Regulators view unbacked cryptocurrencies as high-risk speculative instruments rather than stable reserve assets.

Google Gemini AI evaluated hypothetical price implications if regulatory classification shifted dramatically. The analysis suggested banks treating XRP like traditional reserves would eliminate current capital penalties. Under this scenario, institutional demand could drive trading ranges between $15 and $22 by 2026.

The assessment remains theoretical as no regulatory pathway exists for such reclassification. Basel rules explicitly reserve top-tier status for government-backed instruments, shareholder equity, and precious metals. Cryptocurrency operates under separate standards designed for volatile assets.