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- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
After exploring every corner of the financial ecosystem, cryptocurrency is now heading towards asset-based models. Especially, in Asian countries, digital tokens are evolving to become a security and also a day-to-day payment model. Owing to the increasing usage, many companies like Mastercard are coming forward to partnering with crypto traders to launch disruptive payment methods. At a time when both the usage and staking of cryptocurrency are growing, Ripple and its connections to central financial institutions emerge as the best option for investors.
The Ripple platform was founded in 2012 with the aim to fast-track transactions and efficiently transfer funds in the international business market. Initially started as a model to revolutionize the global financial system, Ripple records every transaction in the blockchain. XRP is the cryptocurrency launched by the Ripple platform. XRP functions as a common accounting entry between creditor and receiver when they transfer money through Ripple. With such extraordinary advantages, XRP was much adopted in the financial ecosystem for its easy transaction and growth. Unlike bitcoin and ethereum, XRP doesn't market itself on its decentralization. In contrast, the digital token is closely aligned with banks, investment firms, and businesses around the globe. Therefore, Ripple is also hailed as the top cryptocurrency among many investors. However, at a time when bitcoin and ethereum are keeping a low profile in the market, it is likely that other digital tokens like XRP are getting their way into intense mainstream adoption. The platform's announcement of a new service that is aimed at finance companies, which will give them the ability to offer cryptocurrency trading to their customers, is anticipated to further trigger Ripple price.
Ripple's Crypto Liquidity Hub
Ripple is already known for its easy transaction platform. However, to further streamline its services, the company is coming up with Ripple Liquidity Hub, which will be launched in 2022. The new feature is already available in preview mode. With the new advancement on track, crypto users will be able to get their hands on a variety of global venues starting from market makers to exchanges, OTC desks, and decentralized models. The new add-on is anticipated to support turn-key integration and smart order routing to source digital assets at optimized prices, giving customers easy buy, sell, and hold crypto assets options.
However, this is not the first time Ripple has started using the Liquidity Hub application. For nearly two years, the platform was utilizing the feature for internal liquidity management, powering millions of transactions worth billions of dollars. In 2022, Ripple will unleash the application for everybody including financial institutions, banks, fintech, and corporates to help them support the upcoming crypto-asset revolution. Once this feature is completely streamlined, the Ripple price will go up drastically based on the adoption and usage.
The XRP vs SEC case has been in the court since 2020, attracting more people and crypto investors to keep a constant eye on it. The Securities and Exchange Commission (SEC) has filed a complaint on Ripple and its two executives for raising over US$1.3 billion through an unregistered, ongoing digital asset securities offering. The complaint stated that since 2013, Ripple has engaged in unauthorized transactions without registering the offering. Initially, this case came as a big blow to the platform as many investors backed off from investing in XRP and some platforms also jolted off the digital token. Besides, there are also contractions over ex-SEC Director William Hinman's famous speech in 2018 when he stated that ethereum is not a security.
Fortunately, the case took a positive turn recently when the judge handling the case asked the prosecution to add documents and emails chain to the case that Ripple claims were sent by SEC to a third party. According to experts, if XRP wins this court battle, it will be a massive victory for the whole cryptocurrency ecosystem. Besides, it will be the first-ever case that a government agency was defeated by a decentralized medium.
Currently, the cryptocurrency market feels a bit glum with bitcoin and ethereum maintaining a moderate value. Therefore, XRP is trading sideways instead of taking the price decrease head-on. It is also better positioned to consolidate at its present value area rather than sell-off. However, despite the ongoing volatility, the digital token has maintained its value over the resistance level of US$1.15. Currently, the price is moving around the US$1.20001 mark. Fortunately, the upcoming features and a possible win in XRP vs SEC case is anticipated to drive up the price drastically.
