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Ripple expands XRP into NFTs amid SEC legal warfare

XRP the native cryptocurrency of the XRP Ledger
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As the SEC’s lawsuit against Ripple Labs continues in US courts, San Francisco-based payments technology company Ripple Labs continues to look for opportunities in other regions and on other shores.

In its latest business expansion, Ripple is looking to bring non-fungible tokens to the XRP Ledger as it seeks to tap into the lucrative and growing NFT market as well as expand its On-Demand Liquidity (ODL) payments business around the world.

Ripple looking to NFTs

While holdings is the biggest use case for NFTs today, David Schwartz, chief technology officer of Ripple, said in a Ripple Drop video this week that he sees a lot of potential for NFTs in other areas. “A lot of us have some kind of digital rights package like movies or songs we’ve purchased, books you might have, or a Kindle, and it’s usually tied to services with a monthly fee,” Schwartz said. “So there’s an interesting future use case to allow people to be sort of a custodian of their digital rights.”

Schwartz said that the XRP Ledger has a number of features that make it highly desirable for NFTs, including its low cost and high speed. XRP is also available directly on the ledger, so the user does not need to go to another ledger to make the payment.

See related article: Mintable Closes $13M Series A Set to Incorporate Ripple XRP Ledger

United side chains expand use cases for XRP notebook

Schwartz said that unified sidechains — blockchains that work alongside other blockchains — could be available for the XRP Ledger in the coming months and expand the use cases for the XRP Ledger. “The XRP ledger can handle over a thousand transactions per second but that’s a finite limit, and if you’re imagining future use cases, you know millions of NFTs or something like that, you can go over that limit because every united side chain has a transaction size.”

Schwartz said Ripple is also exploring support for decentralized finance (DeFi) — but that likely won’t happen until next year. “There is little or no support for DeFi on the XRP Ledger. You could have the XRP Ledger sidechain, you could have the same assets and you would have access to the DeFi functionality,” Schwartz said. Features like DeFi are probably six to nine months away.”

See related article: Ripple proposes united side chains for XRP Ledger smart contracts

Performance of XRP Markets in Q2 2021

Despite its legal woes in the US, the Asia Pacific region was a bright spot for Ripple as the company reported “notable growth” in the region. Brooks Entwistle, Ripple’s managing director for Asia Pacific, said in a Ripple Drop video that RippleNet transactions in the region grew 10 times in 2020, driven by the use of ODL for cross-border remittances, and he expects further growth in the region for Ripple.

Last month, Ripple announced that it has partnered with SBI Remit, Japan’s largest money transfer provider, Coins.ph mobile payments service and digital asset exchange platform SBI VC Trade to use XRP for remittances between Japan and the Philippines. Ripple has also partnered with Australian Stock Exchange-listed Novatti, a digital banking and payments company, to use Ripple’s ODL for cross-border payments and remittances between Australia and the Philippines through iRemit, a Filipino-owned remittance service provider.

According to the Ripple Markets Q2 2021 report, XRP daily volume increased significantly in Q2 (Q2) 2021 compared to Q1 (Q1), with average daily volume doubling to $4.49 billion in Q2 from $2.26 billion in the first quarter. , according to CryptoCompare TopTier (CCTT) data. Ripple’s total XRP sales, net of purchases, amounted to $157.92 million in the second quarter, compared to $150.34 million in the first quarter and constituted 0.04% of global XRP volume. Ripple reported that three billion XRP – one billion XRP per month – was released from escrow in the second quarter, as in the previous quarters. In total, 2.7 billion XRP was returned and subsequently placed in new escrow contracts.

XRP started the year at $0.22 and reached a high of $1.84 on April 15. XRP is currently trading at $0.73 as of press time, according to CoinGecko data.

See related article: Ripple proposes united side chains for XRP Ledger smart contracts

Ripple CEO to Obtain XRP Transaction Information from Binance

Also this week, US District Judge Sarah Netburn granted Ripple Labs CEO and co-defendant Brad Garlinghouse a request to obtain information about XRP transactions from Cayman Islands subsidiary Binance Holdings Limited. Garlinghouse has asked the court to issue a letter requesting international legal assistance so that he can obtain information about his account and XRP transactions made on Binance as evidence to support his defense.

Garlinghouse’s latest proposal follows a similar request by him and fellow defendant Chris Larsen, CEO of Ripple, to 16 foreign cryptocurrency exchanges, including Hong Kong’s Bitfinex, Bitforex and Huobi exchanges, which were approved by the court.

See related article: Court gives green light to Ripple execs to obtain XRP information from 16 foreign exchanges

Last December, the US Securities and Exchange Commission filed a lawsuit against Ripple alleging that its sale of XRP was unregistered securities worth more than 1.38 billion US dollars. The Securities and Exchange Commission has also named Garlinghouse and Larsen as co-defendants for allegedly aiding and abetting Ripple’s abuse. The Securities and Exchange Commission alleged that Garlinghouse — who served as Ripple’s CEO since January 2017 and was the company’s chief operating officer from April 2015 to December 2016 — “sold more than 357 million XRP he had received from Ripple to public market investors, Resulting in the generation of approximately US$159 million in those sales.”

Garlinghouse and Larsen argued that their XRP sales were “overwhelmingly” on crypto exchanges located outside the United States and have filed to dismiss the SEC’s amended complaint.

“The Securities and Exchange Commission’s failure to claim domestic bids and sales should have been fatal to its claims on the grounds set forth in Mr. Garlinghouse’s motion to reject,” wrote Matthew Solomon, a Garlinghouse defense attorney. “If this case is beyond that stage, the discovery that Mr. Garlinghouse is seeking will be relevant to establish that offers and sales defying the SEC did not occur in this country and are not subject to SEC law. summoned in this case.”

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