The possibility of corporate treasuries using XRP to manage foreign exchange (FX) exposure has become a growing topic of interest among financial analysts. As multinational corporations face increasing currency volatility, digital assets like XRP could eventually play a role in improving the speed and efficiency of FX transactions. However, such adoption remains theoretical at this stage.
Global FX Hedging Practices
FX hedging is a core function for companies that operate internationally, helping them protect earnings from currency fluctuations. Data from Milltech covering the 2024–2025 period shows that 86% of European corporations and 82% of North American firms currently hedge their currency exposure.
On a global scale, the average hedge ratio stands at 48%, meaning roughly half of global FX risk is actively managed.
Larger firms, particularly those listed in the FTSE 350 or major U.S. indices, typically operate comprehensive hedging programs. Conversely, companies that neglected FX protection experienced significant losses; around three-quarters of unhedged firms suffered financial setbacks in 2024.
Traditional hedging instruments remain dominant in treasury operations. Forward contracts represent 60–70% of all hedging activity, while options and swaps account for 15–20% and 10–15%, respectively.
A smaller share, typically 20–40%, comes from “natural” hedging, matching revenues and expenses in the same currency. Despite this, many organizations continue to face challenges such as high operational costs, complex reporting requirements, and increased risk when dealing with emerging market currencies.
Exploring XRP for Corporate Treasury Use
According to Reuters, global hedgeable assets tied to the U.S. dollar total roughly $33 trillion, but a large proportion remains unhedged. Treasury experts suggest that as global financial flows expand, companies will seek faster and cheaper alternatives to traditional methods.
This has sparked early discussions about whether digital assets like XRP could be used to streamline cross-border FX management. In a hypothetical model, corporations could allocate 5–10% of their cash reserves to XRP and use the XRP Ledger (XRPL) or RippleNet for international payments.
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These transactions settle in three to five seconds, often at negligible fees, and could significantly reduce settlement delays and transaction costs.
In practice, firms might convert receivables or payables into XRP, transfer the tokens across borders almost instantly, and then convert them back into their target currencies. This process would minimize the time funds remain exposed to exchange rate movements.
However, analysts caution that XRP’s annualized volatility of 50–100% makes it considerably riskier than major fiat currencies, which typically fluctuate between 5–15%. For this reason, XRP is presently more suitable as a liquidity and payment medium than as a direct hedging tool.
Potential Market Impact on XRP
To estimate what such adoption could mean for XRP’s price, Google’s Gemini AI simulated a scenario in which corporate treasuries adopted XRP for part of the $200 billion annual global FX hedging activity.
Based on its current market capitalization of around $136.31 billion and a circulating supply of 60.1 billion tokens, Gemini projected that XRP’s value could rise to approximately $25 per token, corresponding to a $1.5 trillion market capitalization.
The model further indicated that if institutional use expanded in parallel with retail demand, and if liquidity constraints or spot ETF approvals amplified buying pressure, XRP’s market value could surge even higher. In such a case, Gemini estimated a potential price range between $90 and $120, implying a total market cap of $5.4 to $7.2 trillion.
While the idea of corporate treasuries adopting XRP for FX hedging remains speculative, the concept reflects growing interest in integrating blockchain solutions into traditional finance.