Bitwise has filed an application with the United States Securities and Exchange Commission (SEC) for the first spot XRP exchange-traded fund (ETF), according to an Oct. 2 statement.

The proposed ETF aims to directly hold XRP. It is currently pending the effectiveness of its Form S-1 registration and the approval of Form 19b-4.

Bitwise’s XRP ETF would build on the firm’s success with other crypto-based funds, including spot Bitcoin and Ethereum ETFs launched earlier this year.

Why XRP ETF?

Bitwise said it chose XRP due to its ability to facilitate cross-border payments and its strong ecosystem. The firm highlighted that the XRP Ledger (XRPL) supports institutional participation in DeFi and offers compatibility with the Ethereum Virtual Machine (EVM).

The company also highlighted XRP’s large number of active wallets and its status as one of the world’s leading crypto.

Bitwise CEO Hunter Horsley emphasized the firm’s belief that blockchains will create new, apolitical monetary assets and permissionless applications for the 21st century. He added:

“For the past seven years we’ve helped investors access the opportunities in the space, and we’re excited to continue that work with our filing for a Bitwise XRP ETP.”

Ripple CEO Brad Garlinghouse also weighed in, stating that the application signals the growing confidence of traditional financial institutions in XRP. He stated:

“This move underscores the growing trust & integration of digital assets like XRP into traditional finance, marking the continued adoption and maturation of the crypto market. I sense this is just the beginning.”

Notably, this development comes less than a month after Grayscale Investments launched a new XRP-focused crypto investment trust.

Will it be approved?

Market analysts have expressed doubts about the possibility of the XRP ETF’s approval under the current US regulatory environment.

Additionally, Ripple’s ongoing legal battle with the SEC further complicates the approval process. Galaxy Digital’s Head of Research Alex Thorn said:

“SEC has until next week (Oct. 7) to appeal Judge Torres’ July 2023 ruling (which held that secondary sales of XRP through exchanges were not securities) likelihood of this ETF filing succeeding drops to near zero if they do appeal (i’ll be very surprised if they don’t appeal).”

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Editor Editor

Assad Jafri

Editor & Reporter at CryptoSlate

AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.

Ripple has secured in-principle approval from the Dubai Financial Services Authority (DFSA), marking a significant step in its efforts to boost financial services innovation in the United Arab Emirates (UAE), according to an Oct. 1 statement.

This makes the firm the first blockchain-based payment service provider to obtain a license from the DFSA, further establishing its role as a regulated global entity.

Meanwhile, the latest DFSA approval adds to Ripple’s existing portfolio of over 55 licenses globally, including those from the Monetary Authority of Singapore (MAS) and the New York Department of Financial Services (NYDFS).

What this means for Ripple

Ripple shared that this DFSA approval would enable it to expand operations in the Dubai International Financial Centre (DIFC).

In addition, the approval grants Ripple the ability to deploy its enterprise-grade digital asset infrastructure across the UAE, including launching its Ripple Payments Direct (RPD) solution for cross-border payments.

So, the licensing could help the firm achieve its mission of delivering faster, more cost-efficient cross-border payment services while integrating regulatory compliance with continued investments in critical infrastructure elements, such as liquidity management, asset custody, and seamless transitions between fiat and digital currencies.

Notably, global investment bank Houlihan Lokey recently noted that Ripple’s continued growth could help it become a key challenger to SWIFT, the dominant player in cross-border payments. The firm stated:

“While old, SWIFT is still the messaging network of choice but is facing competition from card networks, blockchain solutions (Ripple), FinTechs (Airwallex, Nium, and Wise), and other banking networks.”

UAE growth

Meanwhile, the licensing move is part of Ripple’s broader strategy to grow its presence in the Middle East, having set up its regional headquarters in Dubai in 2020.

Ripple attributes its growth in the Middle East to the UAE’s regulatory clarity, which has fostered an environment where innovative crypto firms can flourish. The country’s regulatory framework also offers Ripple access to rapidly growing markets in Africa, South Asia, and other regions.

Ripple CEO Brad Garlinghouse emphasized the UAE’s leadership in financial technology, stating:

“With its forward-thinking regulatory approach and clear guidance for innovative businesses seeking to invest and scale, the UAE is positioning itself as a global leader in this new era of financial technology.”

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The DLT Science Foundation (DSF) announced the launch of the MiCA Crypto Alliance on Sept. 16, with Hedera, Ripple, and the Aptos Foundation as founding members, according to a statement shared with CryptoSlate.

The Markets in Crypto Assets (MiCA) regulation, recently approved by the European Union, aims to create a regulated digital asset environment that protects crypto users while promoting innovation.

Standardized reporting

MiCA sets strict disclosure requirements for Crypto-Asset Service Providers (CASPs), including centralized exchanges. These providers must disclose the climate impact of their operations and must share this data through white papers and online descriptions accessible to the public.

Notably, the Cardano Foundation released the blockchain network’s sustainability indicators in July through a partnership with the Crypto Carbon Ratings Institute (CCRI).

However, the absence of a formal template poses challenges for CASPs, potentially leading to non-compliance.

The MiCA Crypto Alliance seeks to address this issue with the DSF as its technical partner. It aims to streamline compliance by coordinating efforts among major blockchain projects, foundations, and CASPs. The alliance hopes to simplify regulatory adherence and improve consistency by standardizing white paper content and sustainability indicators.

Members of the MiCA Crypto Alliance, including Hedera, Ripple, and the Aptos Foundation, will have access to exclusive sustainability metrics and AI-powered white paper generation tools provided by the DSF. These tools are designed to help members efficiently meet MiCA requirements and promote a higher standard of compliance and sustainability.

Dr. Paolo Tasca, Founder and Chairman of the DSF, stated that the sustainability disclosure requirements aim to drive climate accountability for projects and support responsible technological development. He added:

“In enabling the launch of the MiCA Crypto Alliance, we are committed to setting the standards for compliance with the regulation and providing projects with the tools and knowledge they need to thrive in this new landscape.”

Nilmini Rubin, Chief Policy Officer at Hedera, noted that the MiCA Crypto Alliance enables the network to collaborate with industry leaders to achieve shared goals. Rubin furthered that blockchain aims to enhance transparency and establish a cohesive regulatory framework that benefits consumers and the industry.

Bashar Lazaar, the Head of Grants & Ecosystem at Aptos Foundation, added:

“[The] coordinated efforts in standardising disclosure obligations are crucial for the long-term success and credibility of Web3.”

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Ripple co-founder Chris Larsen joined 87 other corporate leaders in endorsing Vice President Kamala Harris for the White House, as reported by CNBC on Sept. 6.

The letter included several other high-profile signatories, including Aaron Levie (Box CEO), Jeremy Stoppelman (Yelp CEO), philanthropist Lynn Forester de Rothschild, private equity billionaire José Feliciano, Twilio co-founder Jeff Lawson, DC sports magnate Ted Leonsis, Snap chairman Michael Lynton, and former 21st Century Fox CEO James Murdoch.

Letter Overview

According to CNBC, the letter emphasized that electing Harris as president is the best way to support democracy and the economy’s strength, security, and stability.

The signatories believe Harris would implement fair policies that uphold the rule of law and foster a stable business environment.

The letter was not aimed at swaying the public but rather positioned as a political statement to boost Harris’s profile, especially with the first presidential debate just days away.

Harris and crypto

Larsen’s backing for Harris is notable due to Ripple’s consistent advocacy for blockchain innovation and drive to ensure that pro-crypto candidates are elected. Due to this, the firm has contributed millions to Fairshake, a federal super PAC supporting pro-crypto and pro-innovation candidates.

However, Larsen’s endorsement of Harris may seem unexpected since she has not publicly shared her position on the crypto sector.

Nevertheless, Larsen’s endorsement also signals Harris’s growing support within the crypto industry.

Although much of the sector favors former President Donald Trump for his pro-crypto policies, there is increasing interest in Harris. Recently, crypto executives and advocates reportedly discussed raising $100,000 for Harris’s campaign, hoping to influence her stance on crypto regulation if she wins.

J.P. Theriot, co-founder of Uphold, also voiced his support for Harris on X (formerly Twitter). Additionally, Harris’s campaign has begun accepting crypto donations via Coinbase.

Despite this support, Harris currently trails Trump in the decentralized prediction market Polymarket.

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Ripple has requested a stay on the monetary portion of a recent judgment requiring the company to pay $125 million to the US Securities and Exchange Commission (SEC).

This request was made in a Sept. 4 filing in the US District Court for the Southern District of New York.

According to the filing, Ripple’s legal team stated that the SEC agreed to delay the payment beyond Sept. 6. Under the agreement, Ripple proposed depositing 111% of the judgment amount—about $139 million—into a bank account. This sum will remain there until 30 days after the appeal period expires or until the resolution of any appeal.

The filing also noted that post-judgment interest would accrue in favor of the SEC during this time. Ripple will maintain beneficial ownership of the funds without control, including any interest accumulating from the deposit.

The legal teams emphasized that this agreement protects both parties’ interests. It ensures the SEC will have access to the funds if necessary while allowing Ripple to avoid the costs and inconvenience of posting a bond for the full judgment amount.

Appeal speculation

Some experts believe this filing signals a potential appeal from the SEC. Pro-XRP lawyer Fred Rispoli commented that the odds of an appeal have increased given the case’s complexity.

He stated:

“This is not a guarantee that there will be an appeal, but putting that kind of money in a trust is not something that is done unless SEC is being evasive to Ripple lawyers as to whether it intends on appealing. Again, still possible that no appeal happens but odds have increased.”

Rispoli reassured the XRP community that a potential SEC appeal wouldn’t significantly affect the token, adding that a ruling wouldn’t occur until 2026. He further noted that the SEC’s recent lawsuits against exchanges and its classification of multiple tokens as securities have lessened the potential impact on XRP.

He stated:

“If Ripple and/or XRP don’t make it now, it’s not because of the SEC’s case.”

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Editor Editor

Liam ‘Akiba’ Wright

Senior Editor at CryptoSlate

Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.

The court has levied a $125 million fine on Ripple in the lawsuit filed by the US Securities and Exchange Commission (SEC), ending the four-year-long dispute.

XRP’s price leaped 18% in minutes after the news broke and was trading at $0.61 as of press time, based on CryptoSlate data.

District Judge Analisa Torres from the District Court of the Southern District of New York partially rejected the SEC’s motion for remedies, which demanded over $2 billion from Ripple as compensation for allegedly selling XRP as an unregistered security.

According to the filing:

“The Court shall enter a final judgment enjoining Ripple from further violations of the securities laws and imposing a civil penalty of $125,035,150.”

The ruling comes after the court granted a partial summary judgment to both parties in July 2023. According to the filings, the court found that Ripple’s institutional sales of XRP constituted investment contracts and, therefore, violated securities laws.

However, the court also ruled that Ripple’s programmatic sales and other distributions of XRP did not meet the criteria for investment contracts under the Supreme Court’s Howey test and, therefore, did not constitute securities sales.

Notably, the court analyzed the XRP offerings conducted by Ripple and found out that only 1,278 transactions violated Section 5 of the Securities Act of 1933 (the “Securities Act”), 15 U.S.C. §77e(a),(c). The SEC suggested in its filing that each of Ripple’s “1,700 relevant contracts” constitutes a separate violation, reads the document.

This is a developing story and will be updated as new information is gathered.

XRP Market Data

At the time of press 9:51 pm UTC on Aug. 7, 2024, XRP is ranked #7 by market cap and the price is up 19.63% over the past 24 hours. XRP has a market capitalization of $34.13 billion with a 24-hour trading volume of $2.84 billion. Learn more about XRP ›

9:51 pm UTC on Aug. 7, 2024

$0.61

19.63%

Crypto Market Summary

At the time of press 9:51 pm UTC on Aug. 7, 2024, the total crypto market is valued at at $1.94 trillion with a 24-hour volume of $96.91 billion. Bitcoin dominance is currently at 55.94%. Learn more about the crypto market ›

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Author

Gino Matos

Reporter at CryptoSlate

Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).

Editor Editor

Assad Jafri

Editor & Reporter at CryptoSlate

AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.

Ripple (XRP) is looking to boost blockchain technology adoption in the Middle East through a partnership with the Dubai International Financial Centre (DIFC) Innovation Hub, according to an Aug. 7 statement.

The collaboration aims to promote blockchain and crypto adoption by linking developers, early-stage companies, and traditional large institutions with the DIFC Innovation Hub. This hub is the largest innovation community in the region, hosting over 1,000 growth-stage tech companies, innovation firms, digital labs, venture capitalists, regulators, and educational institutions.

Brad Garlinghouse, CEO of Ripple, highlighted the UAE’s role in providing regulatory clarity and fostering financial innovation. He added:

“Our partnership with the DIFC Innovation Hub promises to drive the adoption of blockchain technology in the region.”

The DIFC is a prominent economic zone with over 5,000 residents, known for its crypto-friendly regulations. In March, the region enacted a Digital Assets Law and Security Law. It also updated existing legislation to eliminate uncertainties for investors and users adopting digital assets technology.

XRPL Foundation

Meanwhile, Ripple President Monica Long also revealed that the firm is considering establishing an independent XRP Ledger (XRPL) Foundation. She said:

“For now, discussions [are ongoing] with XRPLF, XRPL Labs, XRPL Commons, Ripple and others are about a new (independent) XRPL foundation.”

David Schwartz, Ripple’s Chief Technology Officer, explained that the Foundation would serve the interests of XRPL and the community, including developers, builders, users, projects, exchanges, universities, validators, and infrastructure providers.

The Ripple executives’ disclosure comes as XRPL’s previous Foundation transitioned into the Inclusive Financial Technology Foundation (INFTF) to support broader technologies beyond the Ripple-backed blockchain network.

INFTF stated that it wants to advance digital initiatives and acknowledged that its previous connection to Ripple could limit its ability to achieve these goals.

So, the INFTF has asked Ripple stakeholders to create a new entity to oversee functions previously managed by the XRPL Foundation, such as maintaining the XRP Trademark, Code Repository, and XRPL.org domain.

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Ripple has announced a $10 million investment in tokenized US Treasury bills (T-bills) through OpenEden, a tokenization platform expanding to the XRP Ledger (XRPL), according to an August 1 statement.

This investment is part of a larger fund Ripple plans to allocate to tokenized T-bills from OpenEden and other yet-to-be-named issuers.

Ripple has not disclosed the fund’s total size and has not yet responded to CryptoSlate’s request for further details as of press time.

Market experts point out that Ripple’s investment illustrates the increasing institutional interest in tokenizing real-world assets (RWAs). Notably, Tom Wan, a research analyst at 21co, predicts that tokenized US Treasuries could reach $3 billion by the end of 2024, driven by crypto projects seeking to diversify their holdings.

Currently, data from Dune Analytics shows that tokenized US Treasuries manage assets totaling $1.78 billion, with BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) leading the market.

T-bills on XRPL

OpenEden’s T-bills tokens are secured by short-term US Treasury bills and reverse repurchase agreements backed by US Treasuries.

The firm stated that its token minters will undergo Know Your Customer (KYC) and Anti-Money Laundering (AML) screenings to ensure strict security and regulatory compliance.

Markus Infanger, Senior Vice President at RippleX, emphasized that OpenEden’s integration with the XRP Ledger strengthens the network’s role in real-world asset tokenization. He added:

“OpenEden’s tokenized US Treasury bills represent another exciting example of how all types of real-world assets are being tokenized to drive utility and new opportunities.”

Jeremy Ng, co-founder of OpenEden, noted that the firm has attracted a diverse range of institutional clients and that expanding to the XRP Ledger was a logical progression for its product. He stated:

“Bringing tokenized T-bills to the XRP Ledger is the next step in our exciting journey. Purchasers will be able to mint our TBILL tokens via stablecoins, including Ripple USD when it launches later this year.”

OpenEden’s tokenized bills have seen considerable adoption, with the total value of its locked assets exceeding $75 million.

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Ripple’s XRP token has surged to a four-month high of $0.65 and is on pace for its best monthly performance this year.

According to CryptoSlate’s data, XRP’s value has jumped about 33% over the past month, making it the top-performing large-cap crypto for July, surpassing Solana and other high-flying digital assets.

Retail and whale interest

Market analysts attribute this rise to the growing retail and whale investors’ interest in the digital asset.

According to CoinMarketCap, XRP’s trading volume spiked by 165% to $2.5 billion in the last 24 hours. Notably, South Korean exchanges Upbit and Bithumb contributed around 15% of this volume.

Additionally, blockchain intelligence firm Santiment reports a significant increase in wallets holding at least 10,000 XRP over the past five weeks, reaching a six-month high of 279,400 addresses. The firm noted that the correlation between these large wallets and XRP’s market value has been evident throughout 2024.

Potential SEC settlement?

Moreover, there are also speculations about a potential settlement between Ripple and the US Securities and Exchange Commission (SEC).

The SEC is set to hold a closed-door meeting on Aug. 1, sparking speculations that it might discuss a settlement with Ripple. However, the regulator’s website did not indicate that the meeting would involve the crypto company or its XRP token.

Still, many in the XRP community believe it indicates an impending agreement between both entities, as the meeting agenda included topics such as the institution and settlement of injunctive actions and administrative proceedings.

Furthermore, some analysts have pointed out that the SEC’s reluctance to reach a court decision on the security status of third-party tokens like Solana in its case against Binance may strengthen Ripple’s defense against the SEC’s securities claim on XRP.

Last year, Judge Analisa Torres ruled that XRP’s programmatic sales to the public do not constitute an offer or sale of an investment contract. However, she also ruled that the institutional sales of the token violated federal securities law.

Since then, the financial regulator has sought to penalize the crypto firm heavily for these violations.

Ripple CEO Brad Garlinghouse criticized the SEC for its inconsistent regulatory practices and ambiguous rules. He remarked:

“Chair Gensler testifies the rules are clear, yet his SEC can’t figure them out and applies them haphazardly, festering more industry confusion.”

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