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Ripple’s swift growth within the international finance sector, alongside the ongoing development of the XRP Ledger (XRPL), has garnered notable interest from the wider market. Ripple CEO Brad Garlinghouse recently highlighted the organization’s top five strategic acquisitions, underlining how these agreements are influencing the crypto payment firm’s trajectory and fortifying XRP’s pivotal role amidst the transforming ecosystem.
Ripple and XRP Ledger Reinforce Global Stance Through Acquisitions
In a post on X social media last Friday, Garlinghouse affirmed that with the full acquisition of Hidden Road, now renamed Ripple Prime, the crypto payments firm has completed five significant takeovers in approximately two years. These comprise GTreasury, Rail, Standard Custody, Metaco, and now Ripple Prime. Each acquisition bolsters the organization’s position in the global finance landscape and aligns with its aspiration to create what Garlinghouse describes as an “internet of value,” where movement occurs as effortlessly as information does online.
Garlinghouse stressed in his post that XRP stands “at the heart of everything Ripple engages in,” emphasizing its crucial function in the firm’s expanding array of financial offerings. Each acquisition, whether focused on liquidity management, custody, or settlement, is intended to improve how institutions utilize Ripple’s payment technology and, ultimately, the XRP Ledger to transfer value worldwide with enhanced efficiency and security.
After Garlinghouse’s post, crypto market analyst Crypto Sensei proposed a significant inquiry regarding how the company’s new integration would manage settlement. He also questioned whether the organization’s stablecoin, RLUSD, which currently exists on Ethereum, would also function on the XRP Ledger. Although the Ripple CEO has not confirmed the details, the community has responded, suggesting that the payments firm intends to launch RLUSD on XRPL shortly. This move would permit the recently acquired brokerage platform, Ripple Prime, to manage both liquidity and settlement intrinsically on the ledger.
Should this occur, the firm may soon oversee everything from trade execution to settlement, with XRP serving as the key bridge asset. This strategic maneuver could assist the company in achieving its defined objectives of merging traditional financial infrastructure with blockchain-enabled liquidity.
The Firm Utilizes XRP In Significant Equity Transaction
In another noteworthy development, crypto advocate Diana reported that Ripple has confirmed through a US Securities and Exchange Commission (SEC) filing that it financed a corporate acquisition utilizing XRP as the currency for payment. The filing by Armada Acquisition Corp II disclosed that Ripple contributed 126,791,458 XRP, roughly $305 million, in exchange for equity units that would convert into PubCo Class A shares upon completion.
This transaction represents one of the initial instances where XRP has been directly employed as a financial asset in a regulated equity agreement. This action signifies a milestone for Ripple, notably after it officially resolved a 7-year legal battle with the SEC earlier this year, which had claimed that XRP was a security.
As per Diana, the acquisition will effectively convert XRP from a utility token into a type of institutional capital. The payment firm’s adoption of XRP as a payment mechanism also follows its GTreasury acquisition and its membership in the Federal Reserve’s Faster Payments Task Force Steering Committee, further entrenching XRP into conventional financial operations.
Featured image from iStock, chart from Tradingview.com
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