3 Reasons Why XRP is Worth Buying Right Now and Holding for at Least 3 Years

XRP (CRYPTO: XRP) seems to have continuously had doors opening for it recently. Every time there is a new positive catalyst, it paves the way for this currency to continue rising in the coming years. There are three recent developments that make XRP worth buying and holding for at least three years. Let's take a look at each development and put them into context.

1. The Legal Troubles May Have Ended The SEC has been in a legal battle with Ripple, the company behind XRP, since late 2020. The contentious issue is whether Ripple violated securities laws by offering XRP without filing the necessary paperwork with the regulatory agency. That battle is now coming to a conclusion, and it seems that XRP has convincingly won. The SEC and Ripple jointly filed a motion on May 8, seeking to resolve the SEC's lawsuit for a total of $50 million, down from the previously agreed amount of $125 million. This motion is currently under review by the judge. If the judge approves, Ripple will recover $75 million from the previously planned settlement. More importantly, it will be free to continue issuing and developing XRP without the fear of regulatory agencies shutting down operations and rendering the currency worthless. Thus, perhaps the biggest risk that this currency faces is now -- nearly -- in the rearview mirror, which is another reason to buy it.
2. A Major Buyback Has Just Been Greenlit On April 8, Ripple paid approximately $1.2 billion to acquire a company called Hidden Road, a type of business known as a prime broker. Prime brokers provide services to other financial companies, allowing them to borrow money and execute their trades, among other things. Now, because Ripple owns Hidden Road, certain stablecoins on the XRP ledger can be used as collateral for institutional investors such as hedge funds using the Hidden Road platform. Importantly, these stablecoins can now be used as collateral for loans in both the cryptocurrency and traditional finance sectors, meaning they serve as a financial bridge between these two areas. Another benefit is that all post-trade activities that Hidden Road provides to its customers will be transferred to the XRP ledger, creating significant volume for the chain, as well as a larger on-chain capital supply. The summary of these benefits is that XRP can no longer be denied as it participates in the financial system of a system that institutional investors actually use to achieve their goals. It is additional marketing for them to adopt XRP to save their costs, and the new capital stored on-chain is likely to also increase its value. Over time, the price effect can be significant.
3. Perhaps it will soon be held by the U.S. government. As you may have heard, there has recently been an executive order in the United States requiring the creation of a digital asset reserve (DAS). Although that reserve has not yet been implemented, if it does, XRP will be included. This means that the U.S. government will be the one to hold this currency for the long term, if not necessarily the buyer in the market. According to the proposed DAS, the U.S. government will hold onto seized digital assets, including XRP, instead of selling them. Therefore, there will not be much XRP supply floating around, as the assets held will likely be kept in the DAS permanently or at least until another administration changes the policy. With a lower circulating supply, buyers will need to compete for the remaining pieces of the pie, potentially causing prices to rise higher over the years at a slightly faster rate than usual.

Another bullish trend of XRP being incorporated into DAS is that it signals the government believes it is valuable enough to hold. When combined with other regulatory catalysts and the use of this currency by players in the traditional finance sector, it is gaining a lot of credibility as an asset and that could also help it regain value.