XRP has been on a rocky road this month with too much volatility going around. Nevertheless, it seems more traditional institutions have now embraced the asset. Based on the new report of the Basel Committee on Banking Supervision (BCBS), 19 out of its 45 member central banks that disclosed their cryptocurrency positions have exposure to XRP.
The New BCBS Report
The latest BCBS report shows 10 banks from North America, seven from Europe, and two from other parts of the globe have declared investments in cryptocurrency assets. One of the digital currencies that held prominence in the paper was XRP.
According to the document, the Basel Committee has been conducting “a multi-pronged set of analytical, supervisory, and policy initiatives related to crypto assets” since 2018. The banking supervisory body explains that it uses a new set of data collection template for the monitoring and assessment of crypto, which are subject to data quality caveats and latent biases.
BCBS cleared out, however, that all the reporting banks were among its Group 1 banks, with the exemption of three Group 2 banks. There was a notable uneven distribution in terms of crypto exposures by the covered banks, too, as two of them already accounted of over 50% of the total while the other four only had a combined exposure of below 40%.
The banks that declared involvement in crypto assets indicated an exposure of €9.4 billion ($10.27 billion at prevailing exchange rates). Bitcoin (BTC) and Ethereum (ETH) respectively represented 31% and 22% of the participating banks’ crypto exposure. Meanwhile, the same virtual currencies accounted for 25% and 10% of the investment vehicles, respectively.
XRP follows the two heavyweights as it made up 2% of the overall exposure of banks, which means €188 million ($205 million at present rates). This kind of reach effectively positions it as the third largest altcoin constituting the reporting banks’ crypto commitments.
In light of the new Basel Committee report, XRP only moved by 1.43% on the daily chart, settling at the current $0.6139 price as of 1:00 PM UTC time this Tuesday. The coin saw a double-digit increase in transaction volume during this time at 15.1% as it moved between a low of $0.6072 and a $0.6278 high.
As of the past week, XRP has found resistance at the $0.66 line while support lay at $0.59. The recent pump of the coin came when an XRP ETF filing by BlackRock surfaced on the Delaware Divisions of Corporations website during the 14th of November.
Although Bloomberg’s Eric Balchunas claimed that Ripple disavowed involvement in the filing, a lot of people in the crypto community are still not convinced and they suspect that it may have been a legitimate leak.