crypto.news
Ripple has bought Pantera Capital’s minority stake in Bitstamp, a European-based cryptocurrency exchange.
Ripple extends its financial reach
Galaxy Digital Holdings revealed in its latest quarterly report that it had advised Pantera Capital, an American crypto-asset investment firm, to sell its Bitstamp shares to Ripple.
Galaxy Digital’s CIO, Christopher Ferraro, also confirmed the decision in a conference call with shareholders earlier in the month.
However, he did not specify exactly why Galaxy Digital advised Pantera to offload the shares, leaving some observers to speculate on the parties’ intentions in the deal.
3. The sale is not described as an acquisition, so why did Ripple do it? Wouldn't expect it's a pure financial play. For LH? ODL? What are the forward looking intentions here? Also, Bitstamp HQ is in London.
— WrathofKahneman (@WKahneman) May 23, 2023
According to media reports, Pantera bought about $10 million worth of Bitstamp shares in 2013, just before the crypto exchange became a mainstay in the industry.
Based in Luxembourg, Bitstamp is one of the longest-running crypto exchanges, with a presence in over 50 countries.
The exchange is one of Ripple’s on-demand liquidity (ODL) partners. Additionally, Bitstamp has expanded its services on the XRP ledger by incorporating euro-backed IOUs into the network.
Ripple looking to dominate digital payments market
Ripple is known for its native XRP token and its cross-border payment system, and it has been expanding its reach within the financial industry.
The company has previously secured partnerships with major banks and financial institutions worldwide, including Santander, American Express, and Standard Chartered.
Ripple’s technology has also facilitated cross-border remittances in Mexico, the Philippines, and Thailand.
The deal between Ripple and Pantera was completed for an undisclosed amount. Still, it is expected to provide Ripple with additional resources to develop its network and expand into new markets.
It comes when crypto exchanges are gaining increased attention from regulators and governments worldwide.
Ripple itself is at the center of a long-running legal battle with the U.S. Securities and Exchange Commission (SEC) over allegations that, since its inception, the company has raised more than $1.3 billion by selling unregistered securities.
The case, which could significantly affect the broader crypto industry, is expected to be decided in the first half of 2023.