Ripple has bought a small portion of a cryptocurrency exchange based in Europe, Bitstamp owned by Pantera Capital.
The previous owner of this portion was Pantera Capital, an American company that invests in cryptocurrency assets. In their recent report, Galaxy Digital Holdings, another cryptocurrency company, suggested that Pantera Capital sell its shares in Bitstamp to Ripple.
Christopher Ferraro, the CIO of Galaxy Digital, confirmed this decision during a conference call with shareholders. However, he did not mention the reasons behind Galaxy Digital’s recommendation, which has led some people to speculate about the intentions of the parties involved in the sale.
Pantera reportedly bought around $10 million worth of Bitstamp shares in 2013, which was before the cryptocurrency exchange became popular.One of the oldest cryptocurrency exchanges, Bitstamp is based in Luxembourg and operates in over 50 nations.
The exchange is an on-demand liquidity (ODL) partner of Ripple. Bitstamp expanded its services on the XRP ledger by incorporating euro-backed IOUs into its network.
Ripple looking to dominate digital payments market
Ripple, known for its cross-border payment system and XRP token, has been increasing its presence in the banking industry. It has formed partnerships with prominent banks like Santander, American Express, and Standard Chartered.
Additionally, Ripple’s technology has made cross-border remittances easier in Thailand, the Philippines, and Mexico.For an undisclosed sum, Ripple and Pantera completed their transaction.
Yet, it is anticipated to provide Ripple with more funding so that it may expand into other areas and build out its network. This occurred during a period when governments and regulators worldwide were becoming increasingly focused on cryptocurrency exchanges.
The United States Securities and Exchange Commission (SEC) has been involved in a long legal battle with the company. The SEC claims that Ripple raised over $1.3 billion by selling securities without proper registration since its establishment.
The case is anticipated to be decided in the first half of 2023 and has the potential to have a large impact on the larger crypto industry.