Ripple has applied to become registered as a crypto asset company with the United Kingdom’s Financial Conduct Authority (FCA). It is also trying to obtain a payments licence in Ireland as part of its regional investment campaign. The move comes in the context of the US SEC cracking down on crypto and blockchain companies, including Binance and Coinbase.
Ripple is engaged in its own battle against the SEC and has claimed a victory of sorts recently. The company’s XRP token was classified as a security only when sold to institutional investors but not retail investors. The ruling is seen as a victory for Ripple and the crypto industry, but it’s worth noting that the SEC can still appeal the decision at the time of writing.
Apart from its ongoing battle with the SEC, Ripple has been focusing on several partnerships and expansions in 2023.
For instance, Ripple’s Singapore subsidiary obtained in-principle regulatory approval from the Monetary Authority of Singapore in June 2023. By obtaining a Major Payments Institution Licence in Singapore, Ripple aims to offer regulated digital payment token products and services in the city-state while scaling the use of its crypto-enabled On-Demand Liquidity (ODL) service. According to the company press release, ODL gained momentum in 2022, and much of this growth was driven by its Singapore operations.
In the same month, Ripple collaborated with the Colombian central bank to demonstrate the utility of blockchain to the general public. Banco de la República worked with both Peersyst and Ripple on a blockchain pilot programme on the XRP ledger. The programme will run through 2023 and will demonstrate the utility of blockchain technology to the public. The end goal is to leverage Ripple’s CBDC platform to pilot use cases that will improve Colombia’s high-value payment system.
In May 2023, Ripple improved its CBDC platform to meet the needs of central banks, governments, and financial institutions. Ripple launched its Central Bank Digital Currency solutions and private ledger for CBDCs in 2022, and since then, the company has positioned itself as an important player in international digital currency development.
According to Ripple, some of the most important benefits of digital currencies such as CBDCs and stablecoins include faster transaction speeds, lower costs, and reduced settlement times. Ripple’s solutions aim to expand these benefits to also include lowered energy use compared to that of traditional payment methods or some cryptocurrencies.
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