In response to ambiguous regulations surrounding digital asset trading in the United States and amidst ongoing legal challenges from the U.S. SEC, Ripple Labs is charting a path for expansion beyond the country’s borders. Recent reports suggest that Ripple has acquired the shares of Europe-based cryptocurrency exchange Bitstamp previously held by Pantera Capital.
According to the Galaxy Digital shareholder update conference call report for the first quarter of 2023, it is revealed that Galaxy Digital advised Pantera to sell its stake in Bitstamp to Ripple Labs. However, it is worth mentioning that this sale is not explicitly referred to as an acquisition deal in the report.
This raises an important question about why Ripple proceeded with the deal. Speculation suggests that this transaction may not be a simple financial arrangement, but rather a strategic move toward building Ripple’s Liquidity Hub (LH) or On-Demand Liquidity (ODL).
Notably, Ripple’s LH service does not involve its native cryptocurrency, XRP, while its ODL transactions are settled using XRP.
2. In 2014, Pantera invested $10m in Bitstamp (out of $12m round). Bitstamp is valued ~$400? (estimates vary). Trying to dig up more tx details. https://t.co/Va9HlQMz5M
— WrathofKahneman (@WKahneman) May 23, 2023
Ripple Dominates the Digital Payment Landscape
Ripple is positioning itself to dominate the digital payments market, leveraging its renowned XRP token and cross-border payment system. With a track record of expanding its presence in the financial industry, Ripple has forged partnerships with major banks and financial institutions globally, including Santander, American Express, and Standard Chartered.
Through its innovative technology, Ripple has facilitated cross-border remittances in various countries such as Mexico, the Philippines, and Thailand, demonstrating its commitment to seamless international transactions.
The recent undisclosed deal between Ripple and Pantera will likely provide Ripple with additional resources to strengthen its network and venture into new markets, further solidifying its position in the industry.
This move comes at a time when crypto exchanges are attracting heightened scrutiny from regulators and governments worldwide, underscoring the need for Ripple to navigate the evolving regulatory landscape while expanding its market dominance.
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