A new proposal by Maximilian Staudinger suggests using XRP to unlock $1.5 trillion trapped in US banks' Nostro accounts. Nostro accounts hold pre-funded money to facilitate cross-border payments. Globally, these accounts contain about $27 trillion, with $5 trillion linked to American banks.

Meanwhile, the XRPUSD H1 chart shows the price is currently near a level where it faced resistance twice. If this level continues to act as resistance, intraday sellers could push the price lower.

Proposal for XRP in Financial Transactions

Staudinger's proposal outlines XRP’s role in reducing capital constraints in banking. He suggests that replacing traditional Nostro accounts with XRP settlements would free up liquidity. This would allow the government to redirect funds toward a national cryptocurrency reserve, Coinfomania reported.

This is the guy that wrote the comprehensive proposal: xrp as a strategic asset for the US!
Maximilian Staudinger pic.twitter.com/TdyVX66dSe

— Danny Vandermeer (@DannyVandermeer) March 13, 2025

He proposes that Bitcoin be the primary reserve asset, with Solana and Cardano playing secondary roles. However, he maintains that XRP should be the primary tool for processing transactions due to its speed and cost-effectiveness.

He also suggests that XRP could be integrated into US government financial systems. This includes processing payments such as Social Security and tax refunds. According to Staudinger, using XRP could accelerate these transactions and lower associated costs.

Regulatory Challenges and Implementation Plans

Staudinger’s proposal faces regulatory challenges, as the US Securities and Exchange Commission has not provided a clear classification for XRP. Without this clarity, its use in government and banking remains uncertain. Staudinger has called for the SEC to designate XRP as a payment asset to support broader adoption.

The proposal suggests two possible implementation strategies: a standard 24-month rollout requiring regulatory approvals and bank integration or a faster approach within 6 to 12 months, relying on executive orders and Federal Reserve involvement. While legal and regulatory barriers remain, the proposal has prompted discussions on digital assets in government financial systems.