Could JPMorgan’s Cross-Border Payments Push XRP to $1,000?

• An analyst subjects XRP to a comprehensive analysis using a document called “XRP Liquidity Cheat Cheet.”

• The document claims that XRP can sufficiently handle a daily payment volume of $1 trillion at a price range of $100-$500; however, others express doubt. 

Ripple’s XRP has been flagged as a highly undervalued asset as its utility in cross-border payments has triggered bullish sentiments among market players. Its potential was highlighted in a 2023 report by Oliver Wyman and JPMorgan, where Ripple and XRP were mentioned as entities that could help unlock the $120 billion trapped in cross-border payments. 

Notable Mention of Ripple’s Solutions by Reputable Institutions

According to our analysis of the report, JPMorgan estimated that $23.5 trillion is moved by corporates across countries annually (equivalent to 25% of global GDP). Fascinatingly, this was achieved through the reliance on wholesale cross-border payment processes, which are sub-optimal in cost, speed, and transparency. This process, according to the report, leads to additional costs of FX conversion, trapped liquidity, and delayed settlements as confirmed by the senior treasury manager at Global Packaging MNC.

While working on some strategic transactions, our team was on high alert with inconsistent messages coming from numerous banks along the chain. While the current system has been optimized to handle day-to-day transactions, the non-regular, high value and time-pressured transactions are an area to improve.

In November 2023, Grayscale Investments also highlighted XRP as a potential alternative to SWIFT due to its rare cross-border payment features. 

XRP aims to offer fast cross-border payments at lower transaction costs than competitors.

SEC’s chair, Gary Gensler, during an interactive session last year, stated that bridge currencies, which include XRP, are necessary for the facilitation of seamless transactions between different fiat currencies. 

You could use blockchain, but the current thinking is you need a bridge currency in between, and that bridge could be a stable value that’s backed by the US dollar or the EUR, and it could be a currency like … Ripple has an alternative it’s just piloted in May [2018].

Can XRP Hit $500 or $1000?

In September 2023, CNF reviewed a Bank of England report, which estimated that the cross-border payment sector could witness $250 trillion in volume by 2027. Interestingly, this and earlier XRP-related mentions created a bullish impression around the asset. In that article, it was stated that crypto analyst Shannon Thorp envisions $500 to be a far lower price for XRP than the deserving value. 

Today, another analyst identified as Mason Versluis has predicted that XRP could rise as high as $1000. His prediction was based on a document called “XRP Liquidity Cheat Cheet.” According to the document, XRP can easily handle a daily payment volume of $1 trillion at a price range of $100 to $500. However, this price range would be less likely with a volume range of $6 trillion to $20 trillion. The reason is that the 55 billion circulating supply would not be enough for the amount of XRP tokens needed to handle the volumes. 

The $XRP Liquidity Cheat Sheet 🤫 pic.twitter.com/YBY3AF7ClJ

— MASON VERSLUIS (@MasonVersluis) May 21, 2023

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According to Versluis, XRP can only handle daily payment volume from $1 trillion to $20 trillion once the price hits at least $1000. Mathematically, the price would have to skyrocket by 188,543% from the current value to hit this price point. When this happens, the market cap will increase to an outrageous figure of $55 trillion. 

Some industry experts have expressed doubt as the entire global cross-border volume was around $150 trillion in 2022, or $410 billion a day. Compared to the $1 trillion daily volume of XRP which could take the price to between $100 and $500, the 2022 global daily volume was less than half of that. 

At press time, XRP was trading at $0.566 after surging by 0.41%

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