A new statement from Federal Reserve Chair Jerome Powell has triggered a wave of attention across the financial and crypto sectors. U.S. banks are now cleared to serve cryptocurrency clients without facing restrictions tied to “reputational risk.”
This change removes informal barriers that previously kept blockchain networks from direct access to institutional banking infrastructure.
The announcement is being widely interpreted as a pivotal moment for XRP, a digital asset developed by Ripple Labs. According to Pumpius, it is not a step towards mass crypto adaptation but a focused one toward the efficient infrastructure selection and regulation of the settlement occurrence in real-time.
As the Fed stops deterring banks from dealing with blockchain companies, XRP is also being presented as the most institutional-friendly protocol.
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Pumpius believes that this policy shift comes at an opportune time, given the instability exhibited by other parts of the world. Geopolitical tensions, especially in the Middle East, are also causing pressure in the key international corridors.
🚨 BREAKING: THE FED JUST UNLOCKED THE GATES.
Powell says banks are now free to serve crypto.
No more “reputational risk.”
No more shadow-banning blockchain rails.This is about XRP.
The one protocol built for institutional liquidity. 🧵👇 pic.twitter.com/BUkn2B5WA5— Pumpius (@pumpius) June 24, 2025
Global energy routes are facing uncertainty, while international payment systems like SWIFT remain under significant strain. U.S. regulators, in turn, seem to be turning towards faster, decentralized cross-border payments.
XRP Positioned as a Strategic Solution for Institutional Liquidity
Pumpius explained that the focus is not on choosing digital currencies but on selecting the infrastructure that supports the large-scale financial movement. RippleNet, which uses XRP as a bridge asset, has already been integrated into several central bank pilots and is compliant with ISO 20022 global messaging standards.
These characteristics make XRP a viable option for real-time interbank flows and cross-border liquidity.
Importantly, Powell’s statement leaves the possibility of the regulated usage of blockchain corridors in the U.S. banking system. The phenomenon that has long been restricted to offshore operations can now operate freely and openly within the financial institutions in our country.
The regulatory reluctance of the past could only have dragged the XRP-based corridors into the sphere of national and international settlement, which is to happen soon.
Pumpius juxtaposed that it is neither a transitory market state nor a speculative upswing. Rather, it heralds a paradigm shift in the financial system.
XRP is not an addition to the current framework as it is not an accessory but rather a substitute for rails that have long lost their global competencies.
Conclusion
The Federal Reserve’s updated position removes major roadblocks for banks to work with blockchain systems. With global instability pressuring traditional financial infrastructure, XRP is emerging as a ready and tested alternative.
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