- John Deaton pointed out that Ripple did not join the financial organizations looking for banking licenses while continuing to expand its markets.
- Ripple zakumená Hidden Road pro $1.25 milióny vystavějícím tradicionální financování přes služby broker-dealer.
- The XRP Ledger will serve as the operating foundation through which Hidden Road executes its post-trade services because Ripple looks to guide institutional finance operations.
Pro-XRP lawyer John Deaton indicated shock when he learned that Ripple did not join the list of crypto companies that applied for bank licenses. After the Wall Street Journal published its story about Coinbase and Circle and other crypto firms trying to acquire banking charters for financial service growth, his remarks followed.
Ripple advocate John Deaton remarked about the financial activities that Ripple actively conducts. Deaton pointed out that Ripple should apply for a bank license based on its current strategic choices, such as buying Hidden Road prime brokerage. Crypto enterprises continue moving toward becoming direct industry competitors with regular financial institutions, according to recent investigations.
A bank charter permits crypto companies to function legally as financial institutions that can provide supervised banking services to the public. The strategic step allows firms to extend their service variety, which leads to increased acceptance from institutional clients. The emerging bank charter development demonstrates an increasing trend of crypto regulation acceptance in the field.
The company keeps advancing its business reach by acquisitions despite not obtaining a bank charter license. Hidden Road gained a $1.25 billion acquisition when Ripple bought the prime brokerage platform. Hidden Road obtained FINRA membership approval, which enables the firm to operate as a broker-dealer.
XRP Ledger to Support Post-Trade Infrastructure at Hidden Road
After acquiring Hidden Road, Ripple is going to merge the XRP Ledger (XRPL) into the post-trade systems at the acquired company. The initiative will empower the development of fixed income repo and global funding operational services. Ripple proceeds with this shift to fulfill its mission of integrating blockchain operations into conventional financial networks.
Ripple continues working on legal settlement terms with the U.S. Securities and Exchange Commission. Both parties have gained court permission to stop the case proceedings to negotiate settlement terms separately. The potential achievement of this resolution creates an opportunity for Ripple to potentially pursue a bank license application soon.
