The global financial landscape is undergoing a quiet but profound transformation, driven by blockchain innovation and institutional adoption. At the heart of this shift, Ripple and its native cryptocurrency, XRP, are emerging as pivotal players—according to Oliver Michel, CEO of Tokentus Investment AG, a leading German venture capital firm. In a recent episode of Crypto Talk, a German television series produced in collaboration with Der Aktionaer, Michel made a bold prediction: XRP could evolve into the world’s reserve bridge currency, reshaping how cross-border payments operate on a global scale.
Ripple’s Strategic Vision and IPO Ambitions
Michel commended Ripple Labs for its professional management and clear strategic roadmap, particularly its anticipated initial public offering (IPO). Unlike decentralized projects or loosely organized foundations, Ripple operates as a structured, mission-driven company with ambitions comparable to major fintech IPOs.
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“Ripple is a professional company,” Michel emphasized. “It’s not a foundation where some people get together and say we’re going to do something. It’s a professional company with the ambition of a fairly large IPO.” This distinction, he argues, gives Ripple a critical edge in credibility, regulatory navigation, and long-term sustainability.
The company’s focus on solving real-world inefficiencies in international payments positions it uniquely within the crypto ecosystem. Traditional cross-border transactions often take days, involve multiple intermediaries, and incur high fees. Ripple’s solution leverages blockchain technology to streamline this process—using XRP as a digital bridge asset.
XRP as the Ultimate Bridge Currency
At the core of Michel’s thesis is the role of XRP as a liquidity bridge in global finance. He explained how banks or financial institutions can instantly convert fiat currency—like euros—into XRP, transmit it across borders via the XRP Ledger, and then convert it into the recipient’s local currency.
“You give it to the bank, exchange these euros for XRPs, put them on the ledger, i.e., on the blockchain, very quickly and without major costs,” Michel described. “This means that XRP is the bridge currency, XRP Ledger is the blockchain, the bridge and the liquidity pool.”
This mechanism eliminates the need for pre-funded nostro accounts, reduces settlement time from days to seconds, and drastically cuts transaction costs. For institutions dealing with high-volume international transfers—such as remittance providers or multinational corporations—this efficiency is transformative.
Michel sees this not just as a technological upgrade but as a paradigm shift in financial infrastructure. As more banks integrate Ripple’s On-Demand Liquidity (ODL) solution, the demand for XRP as a reliable, fast, and low-cost settlement asset is expected to grow exponentially.
Bullish Price Outlook: $5 to $10 Target Range
When asked about his personal investment strategy in XRP, Michel revealed a confident long-term outlook. “I’ll think about it when it’s at $5. So, from now on, a tenfold increase. At $10, I think that would be super good.”
These projections reflect not only optimism but also a deep understanding of market cycles and adoption curves. With XRP trading around $0.58 at the time of reporting—having recently tested resistance near the 0.5 Fibonacci level—Michel’s price targets suggest significant upside potential over the medium to long term.
His conviction isn’t speculative; it’s backed by active investment. Michel disclosed that both his family office and Tokentus Investment AG hold XRP directly. Additionally, they secured early exposure to Ripple equity through special purpose vehicles (SPVs), positioning themselves across both the token and corporate equity layers of the Ripple ecosystem.
Ripple’s Role in the CBDC Era
As central banks worldwide explore Central Bank Digital Currencies (CBDCs), Michel believes Ripple’s infrastructure could become foundational to interbank settlements. “If the banks work together via the backend, Ripple’s bridge technology is central, everything revolves around it,” he stated.
This vision aligns with ongoing pilots and partnerships where Ripple enables interoperability between different financial systems and digital currencies. Whether facilitating transactions between two CBDCs or enabling cross-currency settlements for commercial banks, Ripple’s network offers a standardized, scalable solution.
Even in the face of competition—from projects like JPMorgan’s JPM Coin—Michel remains convinced that Ripple’s first-mover advantage, regulatory engagement, and proven track record give it an unmatched position in institutional finance.
“If time plays in Ripple’s favor,” he concluded, “then Ripple may well become the world reserve bridge currency.”
Frequently Asked Questions (FAQ)
Q: What makes XRP different from other cryptocurrencies like Bitcoin or Ethereum?
A: Unlike Bitcoin (primarily a store of value) or Ethereum (a smart contract platform), XRP is optimized for fast, low-cost cross-border payments. It settles transactions in 3-5 seconds with minimal fees, making it ideal for institutional use in global finance.
Q: Is XRP centralized?
A: While Ripple Labs plays a significant role in developing the XRP Ledger, the network itself is decentralized, with over 150 validator nodes globally. The ledger operates independently of any single entity.
Q: How does On-Demand Liquidity (ODL) work?
A: ODL uses XRP as a temporary bridge currency to facilitate cross-border payments without pre-funding accounts. Funds are converted into XRP, sent instantly across borders, then converted into the target currency—reducing costs and settlement time.
Q: Can XRP be used for everyday transactions?
A: While technically possible, XRP is primarily designed for institutional liquidity and wholesale banking use cases rather than retail consumer payments.
Q: What impact could an IPO have on XRP’s value?
A: A successful Ripple IPO could increase institutional confidence in the company’s legitimacy and long-term vision, potentially boosting demand for both equity and XRP as part of broader ecosystem adoption.
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Core Keywords Integration
Throughout this analysis, key themes consistently emerge: XRP, Ripple, bridge currency, cross-border payments, On-Demand Liquidity (ODL), XRP Ledger, CBDC integration, and institutional adoption. These terms reflect both user search intent and the technological reality shaping XRP’s trajectory.
As financial institutions increasingly seek efficient alternatives to legacy systems like SWIFT, solutions powered by blockchain—and specifically those utilizing digital assets like XRP—are gaining traction. Michel’s endorsement underscores a growing consensus among European investors that XRP isn’t just another cryptocurrency; it’s a foundational component of tomorrow’s financial infrastructure.
With strong leadership at Ripple Labs, advancing real-world use cases, and strategic positioning ahead of regulatory developments, the path toward widespread adoption appears increasingly viable.
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While market volatility remains a factor—evident in XRP’s recent rejection at key technical levels—the underlying fundamentals continue to strengthen. As adoption grows and macroeconomic conditions evolve, assets with clear utility like XRP may see accelerated demand from both institutional and retail investors alike.
In summary, Oliver Michel’s vision isn’t just speculative—it’s grounded in observable trends: faster settlements, lower costs, regulatory progress, and increasing integration with traditional finance. If realized, his prediction of XRP becoming a world reserve bridge currency may not be hyperbole—but a glimpse into the future of money.