Cryptocurrencies To Watch

Tag: Ripple

  • Ripple Secures Final Approval From NYDFS For Its Stablecoin Launch

    Ripple Secures Final Approval From NYDFS For Its Stablecoin Launch

    Ripple, a leading blockchain-based payment solution, has achieved a significant milestone with the final approval from the New York Department of Financial Services (NYDFS) to launch its much-anticipated stablecoin RLUSD.

    RLUSD is a stablecoin that aims to preserve a 1:1 value with the US Dollar, like widely used stablecoins such as USDT and USDC.

    NYDFS Approves Ripple’s RLUSD

    The NYDFS, known for its thorough regulatory framework, has granted Ripple the green light to issue its USD-backed stablecoin. The approval process involved rigorous assessments of Ripple’s compliance with anti-money laundering (AML) measures, consumer protection policies, and financial obligations.

    Ripple’s CEO, Brad Garlinghouse, also expressed his enthusiasm on X about the approval by noting that when RUSD is live, the world will hear it first from Ripple.

    Garlinghouse initially signaled Ripple’s plans to enter the stablecoin arena, dominated mainly by Tether and Circle mid-2024, suggesting that evolving political landscapes could pave the way for new players like Ripple.

    By August, testing for RLUSD was in progress on Ethereum and the XRP Ledger. Later in October, Ripple announced that RLUSD would soon be accessible on platforms such as Uphold, Bitstamp, and Bullish.

    The firm further noted that RLUSD combines the stability of conventional fiat currencies with the speed and efficiency of blockchain technology, making it well-suited for various financial applications.

    Development of RLUSD slowed briefly as Ripple worked with regulators to ensure its stablecoin met compliance standards. On December 6, Ripple’s CTO, David Schwartz, noted that RLUSD was expected to go live before the end of the year, just 21 days from the time of reporting.

    XRP Sees Uptick in Price

    Following the announcement, XRP, Ripple’s native token, saw a notable uptick in its price, signaling positive investor sentiment. Market analysts believe the stablecoin launch could further solidify Ripple’s position as a dominant player in the blockchain and fintech sectors.

    The crypto asset was down 11% in the past week. However, XRP has increased 5.91% in the last 24 hours, ranking as the fourth largest cryptocurrency after Tether USDT.

  • Whales Amass Over $1 Billion in XRP as Interest Surges

    Whales Amass Over $1 Billion in XRP as Interest Surges

    Large investors, commonly known as whales, have accumulated over $1 billion worth of Ripple’s flagship crypto asset, XRP, over the past three weeks as interest in the digital asset rises. The surge in whale activity is seen as a significant signal of growing confidence in XRP despite its past challenges.

    Market analysis platform Santiment revealed that the substantial buildup has driven XRP’s price to $2.35, marking its peak value since January 8, 2018 (nearly 7 years).

    Over 679 Million Tokens Accumulated

    According to the report, wallets containing between 1 million and 10 million XRP have accumulated 679.1 million tokens during this period. With XRP’s current value, these holdings are worth around $1.66 billion, highlighting the crucial influence of major investors in fueling XRP’s recent upward momentum.

    In addition, another significant development is the rise in adoption, with the total count of non-empty XRP wallets exceeding 5.5 million for the first time in the token’s eight-year existence. The achievement reflects increasing interest from retail and institutional investors, further promoting positive market sentiment.

    Interestingly, XRP’s surge has also altered the rankings within the crypto market, surpassing Tether USDT. Data from CoinMarketCap shows XRP’s market cap at over $138.4 billion, surpassing USDT’s over $134.1 billion. This positions XRP as the third largest crypto by market cap ranking.

    Ripple’s Legal Battles 

    In December 2020, the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple for allegedly selling unregistered securities. The SEC claimed that XRP is a security rather than a commodity and that the blockchain company illegally raised $1.8 billion by selling the token.

    The legal battle was one of the most crucial conflicts between a crypto firm and a regulatory body. Despite a year of court proceedings and legal filings, it remained unclear who held the advantage in the case.

    On October 3, 2024, the SEC also filed an appeal in its lawsuit against Ripple Labs, challenging the court’s ruling in the United States District Court. The appeal came after US District Judge Analisa Torres ruled that Ripple breached federal securities law with its institutional sales of XRP tokens but not with its programmatic sales to retail exchanges.

    Following the ruling, the judge ordered Ripple to pay a $125 million fine, lower than the $2 billion in disgorgement and civil penalties initially requested by the SEC. The ruling was seen as a significant win for the crypto industry, but the regulator’s appeal has put that victory on hold.

  • Ripple Partners Archax to Bring abrdn Money Market Fund to the XRP Ledger

    Ripple Partners Archax to Bring abrdn Money Market Fund to the XRP Ledger

    Ripple has partnered with Archax, a digital asset exchange, broker, and custodian regulated by the United Kingdom’s Financial Conduct Authority (FCA), to provide access to a money market fund from the UK asset manager abrdn on the XRP Ledger (XRPL).

    The latest move represents a significant step in unlocking operational cost savings and improving settlement efficiencies through capital markets infrastructure on the XRP Ledger. The milestone also comes from a continued partnership between Archax and Ripple.

    Since 2022, Archax has been utilizing Ripple’s digital asset custody solutions. As more investors store their tokenized money market fund units on the XRP Ledger, Ripple Custody is leveraging its extensive experience with leading institutional clients and regulated entities to facilitate the tokenization, storage, exchange, and transfer of value.

    Ripple Plans to Invest $5M in Tokens

    According to an official report, Ripple plans to invest $5 million in tokens from abrdn’s Lux fund. This investment is part of a broader initiative where Ripple will allocate funds to real-world assets (RWAs) on the XRP Ledger in collaboration with various asset managers.

    The launch of abrdn’s money market fund on the XRP Ledger showcases the tokenization of real-world assets to improve operational efficiencies and solidify the XRPL as a top blockchain for real-world asset tokenization.

    Over $1B in Tokenized Money Market Funds

    The report also noted that tokenized money market funds have already surpassed $1 billion in assets under management, with some forecasts predicting that the value of tokenized assets could soar to $16 trillion by 2030, highlighting a growing demand in the market.

    Commenting on the latest move, Duncan Moir, Senior Investment Manager, abrdn, said:

    “The next evolution of financial market infrastructure will be driven by the broader adoption of digital securities, real benefits are to be had from leveraging the efficiency of moving the end-to-end investment and cash settlement process on-chain.” 

    Moir added that the XRP Ledger is a proven platform, offering institutional-grade features, cost-effectiveness, and integrated compliance capabilities. The executive stated that Ripple and Archax’s collaboration will achieve a significant milestone.

    “There is no question that the on-chain economy is gaining traction. By working with companies like Archax, we are excited to help financial institutions like abrdn to seize the incredible opportunity represented by blockchain and digital assets technology to deliver utility at scale,” said Markus Infanger, Senior Vice President of RippleX.