XRP was created in 2012 as a token for the XRP ledger that underpins Ripple’s international payment system. Despite Ripple’s focus on global payments, most of its business (95%) is done outside the United States, and Ripple owns a large amount of XRP, which has led to restrictions over the years. It has caused concern for authorities.
Ripple has been in a long legal battle with the SEC (Securities and Exchange Commission). Last year, a judge ruled that XRP is not a security when sold to retail investors, but is an unregistered security when sold to large institutions. Although this was not a complete victory for Ripple, it did bring some clarity and helped XRP recover.
Recently, XRP has been gaining momentum thanks to some positive developments. Edul Patel, CEO of Mudrex, said: “Increased interest in bank tokens has driven XRP up nearly 300% in just one month. The recent approval of Ripple’s stablecoin RLUSD has further pushed XRP’s price up to $2. He added that a pro-crypto SEC chairman is also expected to bring a friendlier stance towards cases like Ripple, further boosting market sentiment.
Ripple’s use of XRP for fast and low-cost international money transfers is also a key factor driving demand. “Ripple using XRP in its payment network could serve as a key use case and create further demand for the token. “We are in a favorable position,” Patel explained.
Also read: Could cryptocurrencies emerge as the “new gold”? Seeking a future as a safe-haven asset, major financial companies such as Bitwise, WisdomTree, and 21Shares are making publicly traded investments backed by XRP. We are working on launching a trust (ETF). If approved, these ETFs could bring more money and attention to XRP, strengthening its market position. This week, XRP’s market capitalization reached $140 billion, surpassing global companies like Sony ($128.6 billion), Nike ($115.57 billion), and Starbucks. ($112.6 billion), Spotify ($97.51 billion), PayPal ($90.23 billion), Dell ($86.75 billion), Ferrari ($80.92 billion). This rise comes after Ripple received regulatory approval for its stablecoin RLUSD from the New York Department of Financial Services (NYDFS). Ripple CEO Brad Garlinghouse celebrated the milestone on X (formerly Twitter), saying, “We have received final approval for $RLUSD from @NYDFS!” List of exchanges and partners will be published soon – and take note: @Ripple will be the first to notify you when RLUSD goes live. ”
At 10:54 AM IST on Sunday, XRP was down 1.35%, trading at $2.43.
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