The volatility of the financial market is intensifying, and traditional banks are actually having a hard time. With the advancement of interest rate marketization, the yields on traditional assets such as bonds and credit are continuously declining. To maintain profit growth, banks need to find new avenues.

Now let's talk about XRP. Research indicates that a higher XRP price can open up new possibilities for banks' asset allocation. Why? The asset pool of traditional banks consists of just a few types—credit, bonds, and cash. These assets are no longer fresh, and yields are declining year by year. However, XRP, as a digital asset, exhibits significant yield potential. Comparing historical data, you will find that XRP's long-term yield clearly exceeds that of traditional bonds and cash assets. More importantly, a rising XRP price can further amplify this advantage, allowing it to occupy a more significant position in the overall asset allocation of banks.

But yield is only one aspect; risk management is what banks are truly concerned about. This is another dimension of XRP's value – its correlation with traditional assets is very low. During economic downturns, credit and bond assets are prone to impairment risks, but XRP's price fluctuations are relatively independent and less affected by macro cycles. This means that XRP can effectively diversify the overall asset risk of banks and serve as a hedging tool. For banks, this risk hedging function is equally important.