Ripple secretly acquires stake in Bitstamp
Ripple, a prominent supplier of blockchain and cryptocurrency solutions for businesses, has made a strategic move to expand its global presence by acquiring a stake in the European cryptocurrency exchange Bitstamp.
Although Ripple has not officially disclosed details about the transaction, the information surfaced through Galaxy Digital’s most recent quarterly report. Specifically, the company advised crypto hedge fund Pantera Capital on the sale of Bitstamp shares to Ripple during the first quarter of this year. This confirmation was reiterated by Galaxy Digital’s CIO, Christopher Ferraro, during a conference call with shareholders earlier this month.
Nevertheless, the details regarding the reasoning behind Galaxy Digital’s advice to Pantera Capital were not explicitly mentioned. As such, the lack of clarity has led to speculation among observers regarding the intentions of the involved parties in this transaction.
Bitstamp currently holds the position of the second-largest market for Ripple’s token, XRP, trailing only behind Binance. Furthermore, the exchange has historically served as a gateway for facilitating access to the RippleNet network. Presently, XRP represents a substantial portion, accounting for 30% of the total trading volume on Bitstamp.
As per media reports, Pantera Capital made a notable investment in Bitstamp back in 2013, purchasing approximately $10 million worth of Bitstamp shares. This acquisition took place shortly before Bitstamp established itself as a prominent player in the cryptocurrency exchange industry.
Bitstamp celebrates its eleventh year in operation, making it the longest-running crypto venue in a sector plagued by hacks and exit scams. According to CoinMarketCap, the platform presently ranks as the seventh-largest cryptocurrency exchange based on trading volume. In the past 24 hours alone, approximately $163 million worth of cryptocurrencies have been traded on its venue.
In 2016, Bitstamp received a publicity boost after it obtained a license to operate as a fully regulated payment institution (PI) in Luxembourg. At the time, the firm touted the license as a factor that enables it to become the first fully licensed cryptocurrency exchange in Europe.
The recent move comes as Ripple is set to expand its presence in Dubai following robust growth in the MENA region.
The US-based company is poised to establish a new office located in the Dubai International Financial Centre (DIFC), a key financial hub, while also relocating its annual customer conference, Swell Global 2023, from London to Dubai on November 8-9.
As Ripple conducts the majority of its business beyond the US, the MENA region holds significant importance for its global operations. Specifically, almost 20% of all RippleNet clients are based in the Middle East, having onboarded big names such as SABB, Lulu Financial Holdings, RAK Bank, Qatar National Bank, and Al-Ansari Exchange. Additionally, the cross-border payments, including remittances from Saudi Arabia, Bahrain, and the UAE to India, make up over half of Ripple’s payment volume in the MENA region.
