Bank of America Records First XRP Exposure on Its Balance Sheet

Bank of America reported its first direct investment in an XRP-linked product, moving beyond years of observational and pilot-stage engagement with digital assets.

What makes this disclosure notable is not the size of the position, but the change in posture it represents.

According to filings with the U.S. Securities and Exchange Commission, the bank disclosed ownership of approximately 13,000 shares of the Volatility Shares XRP ETF, valued at roughly $224,640. While immaterial relative to a $3.3 trillion balance sheet, the position marks the first time the lender has held regulated XRP equity exposure on its own books.

From Research to Balance-Sheet Exposure

Until now, Bank of America’s crypto involvement has largely remained indirect. The bank has participated in research initiatives, explored distributed ledger use cases, and tested payment flows through RippleNet, but it had avoided holding crypto-linked assets outright.

This ETF investment represents a structural shift. Rather than engaging through proofs of concept or client-only channels, the bank has taken direct exposure via a regulated instrument, signaling a higher level of internal acceptance. The move suggests that XRP-linked products have progressed from experimental infrastructure tools to assets deemed acceptable within a tightly governed investment framework.

The choice of an ETF vehicle is also telling. It allows exposure within existing compliance and reporting structures, without requiring direct custody of the underlying token.

Ripple’s European Regulatory Breakthrough

The timing of the disclosure coincides with a major regulatory milestone for Ripple in Europe. On February 2, 2026, the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier, granted Ripple full authorization as an Electronic Money Institution.

That license enables EU-wide passporting, allowing Ripple to offer regulated payment services across all 27 European Union member states. To support the expansion, Ripple has secured a 90,000-square-foot lease at the One Leadenhall skyscraper in London, establishing a European hub adjacent to the Bank of England.

The authorization also provides a regulatory foundation for scaling RLUSD, Ripple’s high-transparency stablecoin, as a settlement asset for cross-border payments. Together, these developments move Ripple’s European operations from limited pilots to full commercial deployment under a unified regulatory framework.

Wealth Management Policy Shift at Bank of America

The bank’s balance-sheet position follows a broader internal policy change affecting client advisory services. Effective January 5, 2026, advisors at Merrill, Merrill Edge, and Bank of America Private Bank were formally authorized to recommend crypto ETFs to clients.

Under the updated guidelines, advisors may suggest 1% to 4% portfolio allocations to digital assets, depending on client risk profiles. Approved recommendations currently focus on spot crypto ETFs from firms such as BlackRock, Fidelity, and Bitwise.

While Bank of America’s proprietary holding is in the Volatility Shares XRP ETF, client-facing recommendations remain centered on larger, more established issuers, reflecting a measured separation between internal experimentation and retail deployment.

Market Takeaway

Bank of America’s first XRP-linked investment is modest in size but meaningful in signal. It marks a transition from observation to participation, even if executed through tightly controlled, regulated instruments.

When viewed alongside Ripple’s newly granted EU passporting rights, the move suggests that bank adoption of XRP-related infrastructure is shifting out of the pilot phase. Rather than speculative experimentation, the focus is now on regulated deployment, balance-sheet compatibility, and market-driven use cases.

The convergence of these developments points to a gradual but tangible normalization of XRP-linked products within institutional finance.

The post Bank of America Records First XRP Exposure on Its Balance Sheet appeared first on ETHNews.