HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

As U.S Greenlights Banks to Hold Crypto, Is XRP on the Cusp of Highly Benefiting From This?

Altcoins 2020/07/23 20:53 by Vincent Mislos
Ripple's Asheesh Birla on how XRP can fundamentally reshape the entire finance industry

The news that U.S. Banks are now allowed to hold cryptocurrency has caused a ‘ripple effect’ in the industry. Announced by the Office of the Comptroller of the Currency (OCC), headed by former Coinbase executive Brian Brooks, the news marks a new development in the industry, where crypto custody was once towered by the likes of Coinbase.

Custody is often talked about side by side institutional investors. In earlier reports, it appears that many institutional investors would like to have their crypto assets held by reputable third parties, instead of handing the keys to the digital assets itself. The notion is that these are traditional finance folks who do not like the idea of alphanumeric private keys and mnemonic phrases. 

At the moment, Coinbase reportedly has a lot of cryptocurrencies held in its vault.

Ripple is presumably an important player in this news because the company has been working with banks and, by extension, traditional financial players. Its partnership with the likes of Moneygram allows it to be the facilitator of global money transfer at a fraction of a fee vs traditional means. Ripple is also an ally to PayID, which sets to standardize how people send money. 

In a statement posted on Twitter, Ripple CEO Brad Garlinghouse welcomed the news as a ‘huge step forward’. He remarked on how the OCC had the lead in the way in fostering innovation and providing a level playing field. Garlinghouse also said, “the future has never been fiat versus crypto – these can coexist in harmony.”

His statement might not be welcomed by those who want to fully remove banks in the equation of finance, but certainly, the news is bullish for crypto. For one, large traditional investors will trust banks more than, say, a regulated crypto exchange.

Some banks probably have hundreds of years of history behind them, making them trustworthy. Some investors might be dealing with the same bank just as their predecessors did with their old money. These banks already keep their stock certificates, probably. They will trust banks more to hold their cryptocurrency keys.

Going back to Ripple, the news was welcomed by the XRP community, who thinks XRP has an advantage because Ripple primarily works with banks hence will empower institutional investors who have been keen to get in. This is because the OCC also stated that crypto custody services that banks can offer ‘may extend beyond passively holdings keys’. It is not clear how and what will be activities beyond passive holdings, but the XRP community on Twitter collectively thinks that this effectively removes anything that stops Americans from buying and holding XRP.

It should be noted, however, that while the XRP community may be right that this news benefits XRP, it actually avails the entire crypto market. Many would argue that it benefits Bitcoin more since it’s the digital asset that large investors are buying and selling. For XRP to ‘highly’ benefit on this bank custody of crypto assets, it will depend on Ripple’s ability to engage with its partner banks to consider XRP when prioritizing which coins to custody.

XRP is currently up 4.73 percent from yesterday.

0 Like(s)



You should also read...

Bitcoin 14/05/20 17:03 by Samuel Wan
Wall Street is Coming to Bitcoin: Here’s Why Crypto’s Institutional Market Just Saw a Massive Turning Point
Things ramped up a gear today as Bitcoin derivatives platform, Deribit announced full integration of the ClearLoop custody and settlement solution for institutions. ClearLoop is the brainchild of Lond...
Read More
Altcoins 14/08/20 16:46 by Brenda Ngari
‘Ripple Has Absolutely No Plans To Reset Our Strategy’, CEO Garlinghouse Responds To Critics
The New York Times has long been viewed as the newspaper of record in the United States. A reporter at the publication, Nathaniel Popper, recently cited a scathing article about Ripple by the Financi...
Read More
Altcoins 22/12/20 17:27 by Bernice Nyambura
Ripple’s “XRP will put up ridiculous numbers in the next few weeks,” pundit asserts amid potential lawsuit from SEC
Ripple’s XRP, the world’s third-largest cryptocurrency by market cap, will have an epic rally in the coming weeks, after failing severally to live up to its investors’ expectations over the yea...
Read More
Bitcoin 26/01/21 14:00 by Yashu Gola
Trouble for Bitcoin as 3 On-Chain Indicators Point to Potential Sell-Offs
Bitcoin bulls should brace for a bearish impact as three of the leading on-chain indicators unanimously warn about potential sell-offs in the spot market ahead. CryptoQuant, a South Korea-based blockc...
Read More
Crypto 06/02/21 12:09 by Bernice Nyambura
Blockchain Bank Protego Becomes the Second OCC-approved National Crypto Custodian
The first and only Washington-chartered digital assets company Protego Trust Bank will become the second digital asset bank in the US to receive conditional approval from the Office of the Comptrolle...
Read More