Ripple Acquires Stake in Bitstamp
Ripple seems to have opted to grow internationally despite legal difficulties and unclear laws in the US.
It has been reported that the blockchain payments company located in San Francisco has purchased a minority share in the European cryptocurrency exchange Bitstamp.
According to a study by Galaxy Digital for the first three months of 2023, Ripple acquired Pantera Capital’s stake in Bitstamp, one of the oldest and most established cryptocurrency exchanges in the world.
Galaxy claims it recommended Pantera’s Q1 sale of its Bistamp shares to Ripple. Ripple’s purchase price tag is yet unknown. According to CoinMarketCap, Bitstamp has been the sixth biggest cryptocurrency exchange by trading volume during the previous 24 hours, with almost $163 million worth of cryptocurrencies changing hands.
This acquisition of Ripple comes after a year of remarkable development for Galaxy Digital’s Investment Banking team, solidifying the company’s position as a preeminent investment bank for digital assets in the wake of FTX.
Pantera’s investment in Ripple Labs and Bistamp was unearthed by the XRPArmy, who were intrigued by the transaction.
Notably, behind Binance, Bitstamp is now the second biggest market for XRP. In addition, the market formerly acted as Ripple’s entrance point into RippleNet. As of right present, XRP makes over 30% of Bitstamp’s total trading volume, with the most active pair being XRP/Euro.
Since neither Ripple nor Bitstamp has issued a formal comment on the topic, the community is attempting to make sense of why Ripple went through with the acquisition. Some have hypothesised that the purchase is related to long-term plans for Ripple’s Liquidity Hub (LH) and On-Demand Liquidity (ODL) offerings. It’s important to note that the LH does not contain the XRP coin, despite the fact that this is used to settle transactions in Ripple’s popular ODL solution.
In light of Ripple’s recent $250 million purchase of Switzerland-based crypto custody business Metaco in a tokenization drive, the exact terms and significance of the transaction will likely be published at a later date.