Crypto researcher Stern Drew outlined a comprehensive framework describing how XRP could transition from a digital asset used primarily in speculative markets to a regulated, systemically significant settlement instrument.
His analysis presents a sequential process—each stage reinforcing the next—through which XRP could gradually assume roles traditionally reserved for fiat currencies and, ultimately, evolve into a globally recognized reserve asset.
The path for XRP to become legal tender and eventually a global reserve currency is not fantasy. It is a sequence of logical, structural, and economic events that are already unfolding.
Here is the case:
1. XRP becomes regulated settlement infrastructure
Once banking charter… pic.twitter.com/cAINw44jmI— Stern Drew (@SternDrewCrypto) November 29, 2025
From Regulation to Settlement Infrastructure
The first stage centers on regulatory transformation. As banking charter approvals, compliance frameworks, and ETF structures advance, XRP’s function could shift from speculation to regulated liquidity provision.
When jurisdictions formally recognize XRP as a legitimate cross-border settlement rail, they establish the legal conditions necessary for its inclusion in institutional payment systems. This recognition marks the beginning of its transition from a market-traded token to a structural component of international finance.
Government Adoption and Functional Legal Tender
Drew suggests that governments facing economic strain—particularly those managing debt, inflation, or currency instability—will increasingly turn to faster, cheaper, and neutral payment rails.
In such environments, XRP’s design offers an efficient settlement option for both domestic and cross-border transactions. Once a government employs XRP for internal or intergovernmental settlements, its usage inherently aligns with legal tender status for specific state functions.
Synthetic CBDCs and Central Bank Integration
Another critical stage involves the evolution of central bank digital currencies. Rather than building complex, proprietary CBDC systems, smaller nations may adopt synthetic models backed by their fiat reserves but issued and settled through the XRP Ledger.
This approach positions XRP as the technical and liquidity foundation underpinning those systems. As central banks conduct interbank settlements or cross-border transfers in XRP, it attains de facto legal tender status within that operational framework.
Adoption by Commodity Exporters and Market Precedent
According to Drew, a major shift would occur once resource-exporting nations begin accepting settlement in neutral digital assets. By adopting a non-sovereign, rapid, and transparent instrument such as XRP, exporters can avoid dependence on politicized or volatile fiat currencies.
A single major exporter integrating XRP into settlement flows could create a precedent that expands global usage and legitimacy.
Institutional Infrastructure and Systemic Recognition
Ripple’s enterprise offerings—including Ripple Prime, RLUSD, and on-chain liquidity programs—form the institutional architecture for widespread adoption.
As banks, fintechs, and governments adopt these interoperable systems, XRP becomes embedded in global settlement infrastructure. Systemic reliance on this ecosystem leads naturally to legal and regulatory recognition, which in turn supports tender status.
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Toward Reserve Currency Functionality
The final phase involves XRP’s progression toward reserve currency characteristics. A true reserve asset must be neutral, liquid, trusted, and settlement-ready—qualities Drew identifies as inherent to XRP’s structure.
As sovereign wealth funds, multilateral organizations, and central banks begin holding XRP as a hedge or liquidity reserve, it evolves into a secondary reserve asset. Once global settlement volumes reach critical mass, holding XRP becomes a prerequisite for participation in international value transfer, effectively elevating it to a primary reserve role.
Drew concludes that XRP’s trajectory does not depend on replacing the U.S. dollar or any sovereign currency. Rather, its potential lies in becoming the neutral infrastructure underpinning global financial interoperability—a role that, once achieved, naturally confers reserve status.