Ripple Secures Major Licensing Wins While XRP Price Battles Market Volatility Above $3

The licenses mark critical milestones in the company’s ongoing effort to establish a robust compliance framework while addressing mounting concerns over XRP’s decentralization.

Strategic Regulatory Gains

The newly acquired MTLs enable Ripple to offer its cross-border payment services in two states known for their stringent regulatory standards. New York, home to the much-discussed BitLicense, and Texas, a hub for crypto innovation, represent strategic opportunities for Ripple’s growth. These licenses contribute to Ripple’s growing portfolio, which now includes over 55 MTLs across the United States and more than 60 licenses globally.

Ripple kicks off 2025 with major wins: new MTL licenses in NY & TX, new customers, and expanded hiring across the U.S. Source: Ripple via X

“This marks a key step in our journey to deliver faster, cost-effective, and reliable global payments,” said Joanie Xie, Ripple’s managing director for North America. “We continue to see growing interest from financial institutions and crypto businesses seeking the benefits of blockchain technology.”

Ripple’s network has reportedly processed $70 billion in payment volume to date, underscoring its capacity to serve traditional financial institutions and crypto enterprises alike. Internationally, Ripple’s operations span regulatory frameworks in Singapore, Ireland, Dubai, and the Cayman Islands.

Addressing Decentralization Concerns

Amid these achievements, questions about XRP Ledger’s (XRPL) decentralization have resurfaced. Pierre Rochard, vice president of research at Riot Platforms, criticized Ripple for its influence over the network, citing its substantial XRP holdings and ability to propose ledger modifications. According to Rochard, such influence undermines XRPL’s claims of being decentralized.

Pierre Rochard criticizes Ripple (XRP) for lobbying against the Strategic Bitcoin Reserve. Source: BitcoinPierre via X

Ripple’s Chief Technology Officer, David Schwartz, pushed back against these claims. “The XRPL operates on a consensus algorithm, not proof of work. Validators are independent and unpaid, reducing incentives for centralized behavior,” Schwartz explained.

He emphasized that any changes to the XRPL require broad agreement among independent validators, ensuring that no single entity, including Ripple, can impose unilateral decisions. Schwartz further highlighted the protocol’s resilience against manipulation, noting, “The governance mechanism is defined by the rules enforced by the nodes, not by Ripple.”

This debate gains significance in light of recent discussions about a U.S. strategic digital asset reserve proposed by President Donald Trump. While some, including Ripple CEO Brad Garlinghouse, argue for a diverse reserve that includes assets like XRP; Bitcoin maximalists such as Rochard advocate for an exclusively Bitcoin-based reserve.

Ondo Finance Brings $185M Tokenized U.S. Treasuries to XRP Ledger

Ondo Finance, a leader in tokenizing real-world assets (RWA), is integrating its $185 million U.S. Treasury-backed token, OUSG, with the XRP Ledger (XRPL). This move aims to expand institutional access to digital treasuries, leveraging XRPL’s enterprise-grade blockchain.

OUSG, backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), enables qualified investors to mint and redeem tokens nearly instantly using Ripple’s RLUSD stablecoin. The integration is expected to go live within six months, with both Ripple and Ondo Finance contributing seed liquidity, though specific figures remain undisclosed.

The tokenization of U.S. Treasuries is a rapidly growing trend, with the market quadrupling over the past year to $3.5 billion, according to rwa.xyz. The shift to tokenized assets offers faster settlements, improved liquidity, and greater accessibility.

Markus Infanger, Senior VP of RippleX, highlighted the significance of this transition: “The 24/7 intraday settlement enabled by tokenized assets like OUSG represents a transformative shift in capital flow management, removing barriers of traditional market hours.”

XRPL’s robust financial infrastructure—featuring compliance tools, decentralized identifiers, and innovations like Multi-Purpose Tokens—positions it as a key player in institutional DeFi. The integration of OUSG reinforces XRPL’s role as a bridge between traditional finance and decentralized markets, bringing institutional-grade assets on-chain with greater efficiency and accessibility.

Following the announcement, Ondo Finance’s governance token (ONDO) rose 4%, signaling strong market confidence in the partnership.

XRP Price Volatility

Despite Ripple’s regulatory successes, XRP has faced significant market pressures. The token briefly dipped below $3 today, reaching as low as $2.68 before a partial recovery. The slide can partially be attributed to greater market forces, including an interest in the recent hype on DeepSeek AI in China.

Ripple’s XRP keeps the bullish momentum alive by holding the price above the $3 milestone. Source: ViaQuant via X

According to Coinglass data, the liquidations of XRP futures have reached $35.27 million over the last 24 hours, indicating that volatility was heavy. Analysts believe if XRP could not hold support at $2.33, further downs are expected from the coin.

XRP price is $3.10, up 10.76% in the last 24 hours as of press time. XRP Liquid Index (XRPLX) chart via Brave New Coin

Technically, the XRP chart displays a balance in bearish and bullish momentum. This token will surge to new highs if the breakout above the critical resistance of $3.55 prevails; if this level fails, not holding significant supports might aggravate the losses.

XRP’s Bullish Outlook Remains Intact

XRP is trading within a bull flag pattern, a classic continuation setup that suggests a potential rally if support holds.

Bullish Setup:

• XRP surged from $2.27 to $3.40 between Jan. 10 and Jan. 16, forming the bull flag.
• The current pullback has XRP trading within a descending parallel channel, with today’s price action nearing key support at $3.30.
• A breakout above this level could reignite bullish momentum, targeting $4.60, a 52% upside from current levels.

Ripple’s recent licensing achievements highlight its commitment to navigating the complex regulatory environment while expanding its footprint in the United States. However, the ongoing scrutiny over XRP’s decentralization and market volatility underscores the challenges Ripple faces as it balances innovation, compliance, and investor confidence.

With its focus on cross-border payments and an expanding global presence, Ripple remains a key player in the evolving cryptocurrency landscape. But as debates over governance and market stability persist, its path forward will require navigating both regulatory hurdles and public perception.

Still, with an XRP Spot ETF on the horizon, and Ripple CEO Brad Garlinghouse pushing hard for XRP to be included in the American digital assets stockpile, the future looks bright for XRP.

The coming days will be critical in determining whether XRP resumes its uptrend or dips further into correction territory. Traders should watch for decisive breaks above or below key trendlines to confirm the next move.