Ripple's decision not to pursue a bank license has surprised many in the crypto industry, especially following recent news of other crypto firms seeking such licenses.
John Deaton's Comments
XRP advocate John Deaton expressed shock upon learning that Ripple did not join the list of crypto companies that applied for bank licenses. His remarks followed a Wall Street Journal story about Coinbase, Circle, and other crypto firms attempting to acquire banking charters to expand their financial services.
Acquisition of Hidden Road for $1.25 Billion
Despite not obtaining a bank charter, Ripple continues to expand its business reach through acquisitions. The recent acquisition of Hidden Road for $1.25 billion allows Ripple to actively engage in traditional financial services through a broker-dealer platform. Hidden Road has gained FINRA membership approval, enabling the firm to operate as a broker-dealer.
XRP Ledger to Support Post-Trade Services
After acquiring Hidden Road, Ripple plans to integrate the XRP Ledger into the post-trade systems of the acquired company. This initiative aims to empower the development of fixed income repo and global funding operational services, furthering Ripple's goal of merging blockchain operations with traditional financial networks.
Although Ripple has not applied for a bank license, it continues to strategically grow through acquisitions and the integration of its technologies into traditional financial services, potentially paving the way for future license applications.
