[DigitalToday reporter Jinju Hong] Discussion about a sharp rise in XRP has intensified as expectations emerge that the Bank for International Settlements (BIS) could in the future classify XRP as a "Tier-1 asset."

On Jan. 7 (local time), blockchain media outlet The Crypto Basic reported that Jake Claver, CEO of Digital Ascension Group, argued on social media platform X (formerly Twitter) that XRP could secure global reserve-currency status over the long term. He said the possibility that it could ultimately be recognised by the BIS as a Tier-1 asset cannot be ruled out.

His remarks came as debate continues over what status cryptocurrencies could hold in the traditional financial system.

Under BIS Basel rules, Tier-1 assets are classified as the highest-grade safe assets that guarantee a bank's stability. Banks rely on these assets to demonstrate they can absorb losses and maintain stability even in times of market crisis. Regulators view them as a core line of defence on bank balance sheets. Current Tier-1 assets include cash reserves held by central banks, sovereign bonds from highly rated countries and physical gold.

Cryptocurrencies, by contrast, do not fall into this category. The BIS has 마련ed a separate regulatory framework for banks' cryptocurrency holdings and divides all cryptocurrencies into two categories, Group 1 and Group 2.

Group 1 includes tokenised real-world assets and some stablecoins, and they must meet strict redemption and collateral requirements. All unbacked cryptocurrencies such as XRP, bitcoin (BTC) and ethereum (ETH) are classified as Group 2. Banks can hold those assets only in a limited way, at about 1 to 2 percent of Tier-1 capital.

Despite these rules, XRP supporters are pinning hopes on the possibility that XRP could be reclassified to a higher grade in the future. Claver's remarks also fueled this optimism.

Google's generative AI Gemini analysed that if XRP shifts from Group 2 to a Tier-1 asset, the way banks use XRP could fundamentally change. It said XRP could be treated like cash or gold, and the burden of capital regulation could fall sharply. Gemini projected that if these changes become reality by 2026, XRP could trade between $15 and $22.

Still, under current BIS rules there is no official route for unbacked cryptocurrencies, including XRP, to be recognised as Tier-1 assets. The Basel framework limits that status to traditional financial assets, while cryptocurrencies are managed under separate rules for high-risk assets.

Experts point out that for XRP to be classified at a higher grade, a revamp of global regulators' framework would need to come first, along with wider real-world use cases and proof of long-term price stability. Until then, they assess that inclusion of XRP as a Tier-1 asset is not realistic.

XRP is looking more and more like it will claim it's spot as a global bridge asset and possibly be recognized by the BIS as tier-one asset in the future.