- Uphold holds $4.54 billion in XRP, making it highly attractive for potential acquirers.
- CEO Simon McLoughlin’s strong belief in XRP could complicate any acquisition.
- Ripple’s history with acquisitions raises questions about future moves in the crypto space.
One of the digital asset-based companies is Uphold, where the target audience is central to XRP trading and infrastructure. By holding up to 24% of the reserves on the platform, that is, $4.54 billion out of the total $6.61 billion of the reserves, XRP has established itself as a niche in the market. This implies that circa 69% of the total assets of Uphold is pegged on the XRP, further validating its critical role in the workings of the platform.
To make the importance of Uphold even bigger, it is necessary to mention that it has a high level of transactions. The platform has also handled a transaction volume of over 26 million XRP, which represents 26% of the total transactions. At these numbers, Uphold has become a strong center of XRP activity, especially as it remains in support of such innovations as USDC using the XRP Ledger.
The Potential for Acquisition and the Role of CEO Simon McLoughlin
Given Uphold’s substantial influence in the XRP ecosystem, speculation has arisen around possible acquisition scenarios. Crypto attorney John E. Deaton recently suggested that major players like Coinbase, Kraken, and Ripple could be potential acquirers. Furthermore, traditional financial institutions such as JPMorgan and PayPal were also named as possible buyers, indicating the growing institutional interest in XRP infrastructure.
However, any acquisition is likely to face challenges, primarily due to the firm stance of Uphold’s CEO, Simon McLoughlin. McLoughlin is known for his strong support of XRP and the broader XRPFi ecosystem. His belief in the asset could make any sale difficult, unless a prospective buyer is willing to offer a significantly higher price. Uphold’s key role in XRP transactions and its firm backing of the XRP Ledger may further strengthen McLoughlin’s negotiating position.
Ripple’s History of Strategic Acquisitions
The history of Ripple acquisitions can also provide some background in the understanding of the possibility of an acquisition by Uphold. Ripple has already invested in small shares in other business such as Bitstamp, which was then merged with Robinhood. The above exercise also puts forward the argument that Ripple itself, or any other key player in the XRP ecosystem, can embark on a similar acquisition program in the future.
As more people take interest in the infrastructure around XRP, the arguments about its possible acquisitions should continue to flare further in the few months to follow. However, regardless of any obstacle that might appear further, the growing awareness of XRP-based platforms, such as Uphold, makes it clear that any acquisition process can significantly affect the rest of the crypto market.
By maintaining this focus on XRP and related infrastructure, Uphold continues to attract the attention of various major players in the financial and crypto industries.
