The news was revealed via a recent transcript of Galaxy Digital’s shareholder conference call, which revealed that Ripple acquired the stakes from Pantera Capital, which is a US-based digital asset investment firm, while Galaxy Digital took on the role of an advisor in the deal.
According to financemagnates.com, Bitstamp is one of the oldest cryptocurrency trading venues, as it opened its doors back in 2011. The company is based in Luxembourg and represents one of the top ten sport crypto exchanges. It is also one of the most important platforms that trade XRP tokens, which is Ripple’s native currency. XRP is the second most-traded cryptocurrency on Bitstamp, right after Bitcoin.
In 2014, Pantera invested USD 10 million in Bitstamp and remained its largest shareholder until 2018, when it was acquired by Belgium-based investment firm NXMH. It’s worth noting that Ripple and Pantera preferred to keep the deal quiet officially. Moreover, the financial terms of the Bitstamp acquisition are undisclosed.
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 a year ago, and in that time, the company has positioned itself as an important player in international digital currency development.
According to Ripple, some of the primary 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.
In the same month, Ripple acquired Switzerland-based digital asset custody provider Metaco to expand its enterprise offerings. The acquisition coincides with Ripple’s strategy to diversify into custody solutions and bring in new revenue opportunities.
The two companies share a history of working with regulated entities to create secure enterprise-grade solutions, and the acquisition will allow Ripple to expand its own enterprise offerings and provide its customers with the necessary technology to custody, issue, and settle any type of tokenised asset.
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