Standard Chartered has issued a bullish long-term forecast for XRP, projecting the token could rise to $12.50 by the end of President Trump’s current term.

In a report released Tuesday, the bank outlined a phased price path, expecting XRP to reach $5.50 by end-2025, $8 by 2026, and $10.40 by 2027. The asset was trading at $1.93 at the time of the report, up over 7% on the day.

The firm attributed recent momentum to optimism surrounding the SEC’s potential withdrawal from its legal battle with Ripple and the growing likelihood of an XRP ETF approval. XRP surged sixfold following Trump’s re-election in November, the report noted.

Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, emphasized XRP’s pivotal role in cross-border payments, calling it a key player in one of crypto’s most scalable use cases.

“XRP is structurally positioned to benefit from the rising demand for blockchain-based, cross-currency settlement,” Kendrick wrote.

The report also drew parallels between XRPL and stablecoins, forecasting a tenfold rise in stablecoin transactions within four years. Ripple’s ongoing push into tokenization was highlighted as an additional catalyst for XRP adoption.

While acknowledging challenges such as a relatively small developer base and limited protocol-level value accrual, the bank said these concerns are outweighed by XRP’s strong fundamentals and macro tailwinds.

XRP is expected to keep pace with bitcoin in long-term price performance, according to the report.