Here’s XRP Price If Corporate Treasuries Use It for FX Hedging

Managing billions across diverse currencies presents a significant challenge for global companies, where even minor fluctuations in the foreign exchange market can impact profitability. Consequently, FX hedging has become an essential strategy for corporate treasuries to safeguard their financial standing against sudden exchange rate shifts.

The Importance of FX Hedging for Corporate Treasuries

FX hedging is primarily a protective measure, not a profit-generating one. Its purpose is to shield a company's existing earnings from adverse currency movements. Businesses commonly employ financial instruments such as forwards, options, and swaps to lock in exchange rates for future transactions, thereby enhancing financial predictability and reducing currency-related anxieties.

Data from Milltech indicates a widespread adoption of hedging strategies: between 2024 and 2025, approximately 86% of European firms and 82% of North American firms engaged in some form of hedging. The global average participation rate was around 48%. Comprehensive hedging programs are a standard practice among companies listed in the FTSE 350 and major U.S. corporations.

Conversely, companies that opted against hedging experienced substantial financial repercussions, with nearly 75% reporting negative impacts in 2024. Forward contracts remain the most prevalent hedging tool, utilized in roughly 60–70% of hedging programs, while options and swaps constitute smaller proportions. Despite its benefits, the FX hedging process can be costly and complex, particularly for businesses operating in emerging markets.

The Role of XRP in FX Hedging

This is where Ripple and its native digital asset, XRP, enter the discussion. The RippleNet platform, powered by the XRP Ledger, is designed to settle transactions within a remarkably short timeframe of 3 to 5 seconds, at a significantly lower cost than traditional banking systems. For corporations engaged in multi-currency transactions, this speed and cost efficiency offer a substantial competitive advantage.

The Crypto Basic highlighted a scenario where if corporations were to allocate even 5–10% of their available cash reserves into XRP, they could leverage it for near-instantaneous settlement of cross-border transactions. This approach would bypass the lengthy bank transfer processes, allowing companies to convert funds into XRP, transfer them globally, and reconvert them into the desired currency almost immediately.

This rapid settlement capability effectively minimizes exposure to currency volatility, which is the core objective of FX hedging. However, a significant consideration is XRP's inherent volatility, which can range from 50% to 100% annually, contrasting sharply with the 5–15% annual volatility of major fiat currencies. This characteristic suggests that XRP may not yet be a suitable direct hedge but could function effectively as a swift liquidity bridge.

Potential Impact on XRP Price with Treasury Adoption

The Crypto Basic's analysis points to potentially substantial implications for XRP's market price should corporate treasuries adopt it for hedging purposes. According to projections shared from Google Gemini, if a fraction of the estimated $200 billion in annual FX hedging flows were to be channeled through XRP, its market capitalization could surge from approximately $153.7 billion to around $1.5 trillion.

With its current supply of 59.91 billion tokens, such a market cap expansion could theoretically drive XRP's price to approximately $25. Further positive developments, such as increased institutional and retail investor interest, coupled with the approval of spot XRP Exchange-Traded Funds (ETFs), could lead to even more significant price appreciation. In such an optimistic scenario, XRP might reach price levels between $90 and $120, elevating its market value to an estimated $5.4 trillion to $7.2 trillion.

Ripple's foundational vision has consistently emphasized speed and cost-effectiveness in facilitating global payments. Regardless of whether corporate treasuries ultimately adopt XRP for FX hedging, this concept prompts a broader conversation about the potential of blockchain technology to revolutionize the financial sector. The conventional FX system is characterized by slow and costly money transfers. Ripple's technology offers a more efficient and economical alternative that could potentially reshape treasury management practices in the future.

The analysis presented by The Crypto Basic illustrates the transformative possibilities should companies embrace this innovative approach. While these figures are speculative estimates, the underlying concept is compelling. It suggests that digital assets like XRP could integrate into the fabric of global finance, marking a profound evolution for the financial industry.