In a significant development for the cryptocurrency sector, Ripple’s XRP has been identified as a preferred investment choice among the world’s leading banks, according to a new report by the Basel Committee on Banking Supervision (BCBS). The BCBS, the principal global standard-setter for banks’ prudential regulation, has introduced a comprehensive dataset focusing on banks’ engagement with crypto-assets.
The BCBS Cryptoasset Data Collection Template
This dataset stems from a cryptoasset data collection template launched by the BCBS in 2018. The template was designed to align with the Committee’s consultative documents from June 2021 and June 2022 on the prudential treatment of crypto asset exposures. It offers detailed insights into banks’ crypto holdings, facilitating an analysis of their exposures. Data for this report was provided by nine banks from the Americas, seven from Europe, and two from other regions.
XRP’s Prominent Position in the Banking Sector
The findings reveal that XRP, the third-largest altcoin, constitutes a significant portion of the banks’ cryptocurrency engagements. Specifically, XRP accounts for 2% of the total €9.4 billion exposure in the sector, amounting to approximately €188 million ($205 million).
Investment Perspectives on XRP
Amidst a general anticipation for Bitcoin ETF approvals, Ripple’s XRP has established itself as a solid and attractive investment option. John Deaton, a pro-XRP attorney and founder of CryptoLaw, recently advised against making investment decisions based on a fear of missing out (FOMO). He suggests investing in cryptocurrencies like XRP before such market sentiments take hold, citing examples of XRP’s price movements around key events.
Concurrently, Ali Martinez, a renowned crypto analyst, predicts a bullish trend for XRP. His analysis is based on the TD Sequential indicator and a notable increase in activities by XRP whales, signalling a potential shift in market dynamics.