XRP Gets A Retirement Twist: Expert Calls It A 401(k)

Date:

Share post:


First Ledger, a decentralized exchange on the XRPL, drew a sharp comparison this week when it said 401(k) and XRP are “basically the same thing” in their aim to grow long-term value.

According to letters sent to the Securities and Exchange Commission, nine lawmakers — including House committee chairs French Hill and Ann Wagner — urged SEC Chair Paul Atkins to act on an executive order from US President Donald Trump that would make it easier for retirement plans to hold crypto. The move would touch roughly 90 million Americans who use 401(k) accounts.

Lawmakers Push For 401(k) Access

Based on reports, the push is aimed at loosening specific investor rules so retirement plans can include alternative assets such as Bitcoin, Ethereum and XRP.

If plans get access, even very small allocations could add big sums to markets. A one percent to two percent allocation across the $12 trillion 401(k) market has been put forward as a reasonable scenario. That math translates to roughly $120 billion to $240 billion flowing into crypto assets.

XRP Gets A Retirement Twist: Expert Calls It A 401(k)

Big Money, Big Comparisons

To give that scale: Bitcoin exchange-traded funds drew $57 billion since January 2024. Over the same period, Bitcoin’s price is reported to have climbed from $45,000 to $124,457, and the global crypto market has grown from $1.65 trillion to more than $4.17 trillion.

Reports also point out that public retirement systems are starting to add crypto exposure — for example, the State of Michigan Retirement System has increased holdings in Bitcoin and Ethereum trusts. Analysts say such moves make the 401(k) debate more than theoretical.

XRP Gets A Retirement Twist: Expert Calls It A 401(k)
Retirement Allocation

Based on an analysis cited in August, if global retirement funds managing about $50 trillion allocated 1% — roughly $500 billion — to XRP, a simple linear estimate could place the price near $12.

With wider multiplier effects, projections mentioned range from $17 to $34. For context, another analysis estimates a 2% allocation to Bitcoin could lift its price to about $175,000 and push Bitcoin’s market cap near $3.4 trillion.

Retirement Funds Could Add Billions

Market commentators argue that retirement money would likely flow into ETFs rather than raw coin purchases. Paul Barron has suggested that 401(k) capital would first head into crypto ETFs, and others have said that ETF access for XRP could be transformational.

That view rests on the idea that ETFs are familiar, regulated wrappers which many plans use already. First Ledger’s comparison frames XRP as a tool for long-term value transfer, likening the token’s role in cross-border settlement to the steady goal of retirement savings.

Featured image from NWM, chart from TradingView





Source link

Leave a reply

Please enter your comment!
Please enter your name here

Related articles

BingX EU Secures Austrian MiCA Licence to Enter 29 EEA Markets

Plus500 Plans US Super-App; Investec to Offer IG Platform ...

Two Polymarket Whales Face Off in $500K Seahawks-Broncos Showdown

Key TakeawaysBreakTheBank bought 500,528 Broncos shares at 42 cents, matched against surfandturf’s Seahawks orders.surfandturf paid $290,000 for...

Lump Sum vs DCA Calculator

Investors who are interested in comparing two different investment strategies—putting all of the money in at once...