Hong Kong Recognizes Ripple and XRP For Cheaper Institutional Payments

The Hong Kong Institute for Monetary Research (HKIMR) has officially acknowledged @Ripple and $XRP as tools capable of making international payments cheaper and more efficient, according to the institute's latest report.

XRP Ledger Highlighted as a Cost-Cutting Tool

The report focuses on the practical utility of the XRP Ledger (XRPL) in lowering the costs tied to cross-border liquidity. Traditional correspondent banking, which relies on chains of intermediary banks to move money across borders, has long been criticised for its high fees and slow settlement times. The HKIMR's findings suggest that XRPL-based infrastructure offers a credible alternative for institutions looking to cut those costs.

XRP enables cross-border settlements in three to five seconds with fees averaging $0.0002 per transaction, and Ripple's On-Demand Liquidity service eliminates pre-funded currency accounts, freeing up capital that would otherwise sit idle at correspondent banks.

The HKIMR is a research body established by the Hong Kong Monetary Authority in 1999, carrying out research in monetary policy, banking, and finance of strategic importance to Hong Kong and the Asia region. Its recognition of $XRP carries weight given that institutional mandate.

Broader Momentum Behind the Endorsement

The HKIMR report arrives at a time when Hong Kong's financial sector is moving decisively toward digital assets. A 2026 report by Ripple and Quinlan found that 77% of Hong Kong's financial institutions are now integrating crypto and blockchain into their operations. The Hong Kong Monetary Authority has also proposed easing capital requirements for licensed banks managing certain cryptocurrencies, signaling a more crypto-friendly regulatory approach.

The HKIMR endorsement also follows the activation of the Islamabad MoU, a development that has renewed focus on using digital settlement to stabilise trade corridors. Within Ripple's broader infrastructure, $XRP functions as a bridge asset and liquidity mechanism, while RLUSD provides stable settlement value. Together, the two assets are intended to strengthen Ripple's cross-border payments ecosystem and improve interoperability between traditional finance and blockchain-based settlement systems.

For @Ripple, the recognition from a body linked to the HKMA adds institutional credibility at a pivotal moment. Ripple President Monica Long has described 2026 as a turning point for the company, emphasising that institutional adoption of $XRP is expected to scale significantly by year-end.

Sources
Hong Kong Monetary Authority: About the HKIMR
IG International: XRP in 2026, Ripple and Institutional Growth
CoinPaper: 77% of Hong Kong Financial Firms Embracing Digital Assets