In a significant development within the world of blockchain and digital assets, one of the world's largest banks, HSBC, has teamed up with Metaco, the Swiss digital assets custody firm recently acquired by Ripple. This partnership has caught the attention of Ripple's passionate XRP community, often referred to as the "XRP army," who see it as a promising indicator of broader adoption of Ripple's blockchain technology and the XRP token. However, this collaboration did not occur overnight, as Metaco had been courting HSBC for over a year before the Ripple acquisition.
In related news, Ripple Labs, the fintech giant headquartered in San Francisco, has executed a programmed release of one billion XRP tokens from its escrow addresses. Tracked and reported by the crypto monitoring platform Whale Alert, this strategic move by Ripple aims to bolster XRP's liquidity within the cryptocurrency market. These regular releases have been a recurring practice since early 2018, taking place on the first day of each month. While this release represents a significant amount of XRP, it is part of Ripple's broader strategy to ensure the stability and accessibility of its native cryptocurrency.
HSBC Partners with Ripple's Custody Firm, Metaco, in a Move that Excites the XRP Community
News of HSBC's collaboration with Metaco, the Swiss digital assets custody firm acquired by Ripple earlier this year, has sent ripples of excitement through the cryptocurrency world, particularly among the dedicated enthusiasts of Ripple's XRP token, often referred to as the "XRP army." The partnership has ignited optimism that major financial institutions are on the cusp of adopting Ripple's blockchain technology and the XRP token.
The "XRP army," a fervent group of XRP supporters, views HSBC's decision to work with Metaco as a promising sign that XRPL, the XRP Ledger, and its native token, XRP, are gaining traction within the traditional banking sector. This enthusiasm, however, should be tempered with a dose of reality, as the path to adoption is often more complex than it appears.
Adrien Treccani, CEO of Metaco, emphasized that the partnership between Metaco and HSBC did not materialize overnight. In fact, Metaco had been in discussions with the bank for over 18 months before the acquisition by Ripple. This underlines the strategic planning and deliberation that go into forging such collaborations within the financial industry.
Treccani acknowledges that while there might not be a direct correlation between Ripple's acquisition of Metaco and HSBC's decision, there is an indirect link. The success of Ripple as a company ultimately contributes to the broader adoption of XRPL as a blockchain protocol, reinforcing the value of the XRP token.
Ripple has been diligently courting banks with a focus on streamlining processes such as cross-border payments. XRPL stands out as a long-standing example of a blockchain that combines public and private use cases while boasting scalability advantages over competitors like Ethereum. It natively supports tokenized assets, reducing reliance on smart contracts, and facilitates on-chain trading with other blockchain-based exchanges and automated market makers (AMMs).
The collaboration between Metaco and Ripple offers a comprehensive solution, encompassing both the infrastructure layer and value-added services. This integrated approach enables banks to obtain digital asset custody, tokenization capabilities, payment services, and liquidity management from a single vendor.
However, the partnership between Metaco and Ripple hasn't been without its challenges. Following the acquisition, rumors emerged that some of Metaco's banking clients were considering alternative solutions due to concerns related to Ripple's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Treccani clarified that some of the speculation was exaggerated, and post-acquisition discussions and reassessments were part of standard business practices. Many of the contracts signed with banks include provisions for changes in ownership.
Treccani stated, "Yes, there have been such discussions, and we have spent recent months clarifying the situation with the banks. I think we have been successful. Going forward, you are going to see more tier one bank partnerships that we will soon be announcing in Europe, the U.S., APAC, and Africa."
Like many major financial institutions, HSBC is recognizing the potential of tokenization, the process of representing real-world assets on blockchains, and the importance of robust digital asset custody technology in facilitating this transition.
Treccani's dedication to cryptocurrency and the principles it represents drives his commitment to serving banks' evolving needs. He believes that many banks will eventually want to offer cryptocurrency-related services, and by building tokenization capabilities now, they will be well-prepared to embrace the world of cryptocurrency when the time comes.
Ripple Labs Releases One Billion XRP from Escrow Addresses as Ripple-SEC Case Hints at Resolution
Ripple Labs, the San Francisco-based fintech giant, has recently conducted a programmed release of one billion XRP from its escrow addresses, as reported by the popular crypto tracking platform, Whale Alert. This move underscores Ripple's ongoing commitment to support XRP's liquidity on exchanges and in the broader cryptocurrency market.
The crypto tracking platform detected three significant transfers, each carrying a substantial amount of XRP. These transfers included 500,000,000 XRP, 300,000,000 XRP, and 200,000,000 XRP, totaling one billion Ripple-affiliated tokens. In fiat terms, this amounts to an impressive $601.4 million. Notably, these withdrawals have been occurring regularly since early 2018, consistently taking place on the first day of each new month.
As part of its strategy, Ripple temporarily releases these XRP tokens to support market liquidity. However, it's essential to note that approximately 800 million XRP are typically moved back to escrow by Ripple Labs in the days following these withdrawals, and this process repeats every 30 days. Interestingly, these routine XRP releases do not appear to have a significant impact on the XRP price.
In addition to Ripple's XRP movements, Whale Alert also identified a withdrawal of 27,000,000 XRP from the Binance exchange, equivalent to $16,413,770 USD. At first glance, this might appear as an unusual purchase, potentially defying the trading adage of "buy low, sell high." However, upon closer examination, the sender wallet was found to belong to Binance as well, indicating that this was an internal transfer within the exchange.
The recent developments surrounding Ripple have given rise to speculation within the XRP community regarding the ongoing legal battle with the SEC. This case has been a prominent fixture in the crypto world for nearly three years, since its initiation in December 2020.
The latest development that has fueled optimism within the XRP community is the SEC's announcement of an upcoming closed meeting, presumably to discuss the continuation of the Ripple case. This is after Ripple secured two significant victories against the regulatory agency in court earlier this year.
In July, Federal Judge Torres ruled that XRP transfers by Ripple to the secondary market should not be considered as security sales. This decision resulted in a notable surge in XRP's price, reaching a local high of $0.71. However, the price subsequently experienced a decline.
The second legal victory for Ripple occurred in the fall when the SEC unexpectedly dropped personal charges against Brad Garlinghouse, Ripple's CEO, and Chris Larsen, the company's co-creator. These developments have raised hopes among XRP enthusiasts that a resolution to the protracted Ripple-SEC case may be on the horizon.
As the XRP community watches these legal proceedings closely, the cryptocurrency market continues to evolve, with Ripple's strategic releases of XRP contributing to the ongoing liquidity and stability of the token.
Price Overview
Daily chart for XRP/USDT (Source: TradingView)
XRP was approaching the major resistance level at $0.6235 following a 0.20% increase over the past 24 hours. As a result, the remittance token was changing hands at $0.6137 at press time. If the cryptocurrency is able to break above the barrier in the next 24 hours, then it could continue to rise to $0.6800. On the other hand, a rejection from the $0.6235 threshold could lead to XRP retracing to $0.5730.
