TLDR
- XRP is officially not a security, ruled by the U.S. District Court in August 2025.
- Ripple raised $500 million, valuing the firm at $40 billion post-ruling.
- Grayscale filed for an XRP ETF while DTCC registered five possible funds.
- RippleNet sees rising adoption by global banks like Japan’s SBI Holdings.
Ripple has secured a major legal win that has reshaped the future of XRP and the broader crypto sector. A recent court ruling clarified XRP is not a security, reducing Ripple’s penalty to just a fraction of the SEC’s original demand. Following the decision, Ripple raised $500 million in new capital, setting its valuation at $40 billion and paving the way for wider institutional and global use.
Court Ruling Confirms XRP is Not a Security
On August 8, 2025, U.S. District Judge Analisa Torres ruled that XRP does not qualify as a security under U.S. law. This ruling dismissed several key claims made by the Securities and Exchange Commission (SEC) against Ripple Labs.
The court reduced the SEC’s initial $1.3 billion penalty request to $125 million. Ripple has the option to settle for $50 million. Ripple CEO Brad Garlinghouse called the decision a “victory for crypto clarity,” while Chief Legal Officer Stuart Alderoty stated it reinforces legal transparency.
This ruling has removed key regulatory barriers surrounding XRP, enabling the token to trade more freely on exchanges and across financial networks. It has also created momentum for the development of institutional-grade products linked to XRP.
Funding Round and Enterprise Expansion
Ripple secured $500 million in funding shortly after the court decision. The round was led by major financial institutions including Citadel and Fortress, and values Ripple at $40 billion. The company plans to utilize these funds to develop new financial tools and enhance its position in cross-border payments.
Ripple’s enterprise network, RippleNet, is now seeing increased adoption from banking groups such as Japan’s SBI Holdings. Ripple has also acquired a digital wallet firm to improve its services for institutional users. The company said it aims to provide fast, affordable global payment solutions by using XRP as a bridge asset.
AWS recently featured Ripple in a case study, citing cost efficiency and speed when sending payments to emerging markets. The company claims that transactions using XRP can be completed in under 35 seconds.
Growing Market Confidence and Exchange Activity
Since the ruling, XRP liquidity has improved across major exchanges. Gemini and other platforms are preparing to handle increased volume as more traders re-enter the market. Liquidity providers have also resumed scaling XRP pairings, boosting overall trading activity.
On-chain decentralized exchange (DEX) activity tied to Ripple has grown steadily. While it has not spiked dramatically, analysts say this growth signals more stable and organic market strength. Market participants have regained confidence, which could support XRP’s longer-term price trend.
Ripple’s legal clarity is also giving institutional investors more comfort. Some asset managers have begun exploring structured financial products based on XRP, including exchange-traded funds (ETFs).
XRP ETF Developments and DeFi Adoption
Grayscale has submitted new filings for an XRP ETF, following renewed interest after the court ruling. At the same time, the DTCC has reportedly registered five possible XRP ETF listings, which could launch depending on regulatory approvals.
Ripple’s role in decentralized finance (DeFi) continues to grow. The company is now working with projects like Tangem Visa to power KYC-enabled crypto payments using XRP. These tools may help expand XRP’s use in compliant DeFi networks.
The legal outcome has also opened the door for more regulated fiat onramps. This could help Ripple integrate with traditional finance systems at a broader scale, especially in cross-border banking.
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