Corporate treasuries are increasingly relying on foreign exchange (FX) hedging to protect profits from currency fluctuations, with data from Milltech showing that between 2024 and 2025, approximately 86% of European firms and 82% of North American firms used some form of hedging, and the global average stood at 48%. Full-scale hedging programs are common among FTSE 350 and major U.S. firms, and those that skipped hedging faced financial losses in nearly 75% of cases in 2024. Forward contracts remain the top tool, used in about 60–70% of programs, while options and swaps account for smaller portions, but the process is often costly and complex, especially for emerging markets.
This is where XRP and RippleNet could play a role, offering transaction settlements in just 3 to 5 seconds at much lower costs than traditional systems. Companies could hold 5–10% of their surplus cash in XRP to facilitate instant cross-border payments, converting funds into XRP and back to other currencies almost immediately, which reduces exposure time from days to seconds. However, XRP's volatility remains high, with annual ranges of 50% to 100% compared to 5–15% for major fiat currencies, limiting its use as a direct hedge but making it suitable as a fast liquidity bridge.
Analysis from Google Gemini indicates that if corporate treasuries use XRP for even a portion of the $200 billion annual FX hedging flows, its market capitalization could surge from the current $153.7 billion to around $1.5 trillion, potentially pushing the XRP price to approximately $25 based on the current supply of 59.91 billion tokens. In a scenario with increased institutional and retail interest, along with potential spot XRP ETFs, the price could rise further to between $90 and $120, raising the market value to $5.4 trillion to $7.2 trillion. While this adoption is still theoretical, it underscores the potential for blockchain to modernize treasury management and global finance.
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