XRP boosted as Ripple adopted by Big Finance players
Ripple (XRP) experienced a significant surge at the beginning of this week, emerging as the top-performing cryptocurrency among the major players as Bitcoin (BTC) and Ethereum (ETH) remained relatively stable. The price of XRP witnessed a whopping 11% increase before experiencing a slight pullback on Monday. Trading volume also saw a notable uptick from $1 billion on Sunday to $2 billion. At the time of writing on 9 November, XRP was trading at $0.69 per token after having briefly climbed the charts to hold the spot of the fourth-largest token by market capitalisation.
Analysts suggested that the notable gains in XRP were primarily driven by spot trading, with liquidations on XRP-tracked futures exceeding $4.4 million. This substantial liquidation amount implies that the use of high leverage might have contributed to the upward movement in prices.
Interestingly, the market indicators for XRP alone can't quite explain this boost for the popular altcoin. Instead, it is more likely to be down to developments concerning the payments firm Ripple Labs, Inc., which created — but does not control — the XRP token. Despite a lack of immediate catalysts for Monday's gains, market observers speculate that bullish sentiment may have been influenced by the fact that Ripple Labs, often referred to simply as 'Ripple', secured key partnerships to operate and provide services in important international markets.
What's the difference between the Ripple coin (XRP) and Ripple the company?
Ripple has traditionally maintained a distance from its native token XRP since its founders created the cryptocurrency back in 2011. While Ripple holds a substantial amount of XRP and uses it in its systems to facilitate cross-border payments, it has stressed that XRP is a truly decentralised currency, unable to be controlled by any entity, even Ripple itself.
Despite this, the relationship between the company and the digital token is strong enough that XRP is referred to as 'Ripple', and any news about the company often affects the price of the token, either positively or negatively. For example, the ongoing court cases and licensing issues with the United States Securities and Exchange Commission (SEC) have seen XRP's price rise when Ripple's case appeared stronger.
Traders closely associate developments in Ripple's legal and regulatory landscape with the performance of XRP in the market, and this could be what's behind XRP's recent rally. It's also worth noting that XRP's price surge also came ahead of Ripple's Swell conference on 8-9 November in Dubai, a corporate event that showcases the company's progress and has been associated with a boost in XRP prices in the past. With that in mind, let's look at the latest Ripple partnerships that could be causing investors to assign a higher value to XRP.
Ripple to power CBDCs in Dubai, Georgia
The Dubai Financial Services Authority (DFSA) approved XRP under its virtual assets regime, allowing licensed firms in the Dubai International Financial Centre to incorporate and offer XRP to clients as part of their crypto services. Additionally, Ripple announced a collaboration with the National Bank of Georgia (NBG) on the Digital Lari (GEL) pilot project, utilising Ripple's central bank digital currency (CBDC) platform.
It's worth noting that the Hong Kong and Taiwan governments are already leveraging Ripple's CBDC service, which was launched in May. The platform enables institutions to manage the entire life cycle of a CBDC, including minting, distribution, redemption, and token burning. Central banks can issue both wholesale and retail CBDCs, facilitating offline transactions.
HSBC partners with Ripple-owned Metaco for tokenised securities
HSBC has joined forces with Ripple-owned tech firm Metaco to launch an institutional custody platform for tokenised securities, commonly known as security tokens. The collaboration aims to enable institutional investors to securely hold tokenised securities on HSBC's upcoming custody service. The new digital asset custody platform is anticipated to roll out in 2024 and will complement HSBC's existing digital asset issuance platform, HSBC Orion, as well as its offering for tokenised physical gold, launched on 1 November 2023. HSBC's move into digital asset custody responds to the growing demand from asset managers and owners for custody and fund administration of digital assets.
HSBC's upcoming digital asset custody platform, set to launch in 2024, will exclusively cover security tokens and will not include cryptocurrencies like Bitcoin and stablecoins such as Tether. This initiative reflects HSBC's strategic response to the evolving market demands for innovative solutions in the realm of digital assets, as the bank continues to strengthen its position in the emerging landscape of tokenised securities.
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Ripple to power cross-border payments with African countries
Ripple has entered into a partnership with African mobile payments provider Onafriq, formerly known as MFS Africa, to facilitate new payment corridors connecting 27 African countries with Australia, the United Kingdom, and the Gulf Cooperation Council (GCC). Onafriq will leverage Ripple Payments' blockchain technology in collaboration with three partner companies: Zazi Transfer for services to Australia, PayAngel for the UK, and Pyypl for GCC member states. The move aims to enhance cross-border payments and remittances in the region, addressing the growing adoption of digital assets in Sub-Saharan Africa. Pyypl is already a Ripple partner in its on-demand liquidity (ODL) solution.
Trade XRP and more with StormGain
Although the news from Ripple's Swell conference failed to deliver on a speculated IPO announcement, the trend of XRP price following Ripple partnerships appears to hold, and holders of XRP should watch its parent company with interest as they plan their next move.
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