GTreasury buy a huge sign of intent
The acquisition of treasury management firm GTreasury by Ripple is seen as a milestone moment for the blockchain-based digital payment company.
The US$1 billion purchase is considered significant because it will allow Ripple to assist in the growth of companies managing cryptocurrencies in corporate treasuries.
With GTreasury, finance teams can improve analysis and management of their cashflows as they transition to digital assets like Ripple’s XPR token.
The acquisition is further noted for the firm’s impressive track record over a long period.
It was founded more than four decades ago and services more than a thousand customers in over 160 countries.
Ripple says the deal will help eliminate the snags and costs that come with “outdated payments systems”.
GTreasury considers the combination of its cash forecasting, risk management and compliance foundation with Ripple’s speed, global network and digital asset solutions an opportunity for treasurers to manage liquidity, payments and risk in the digital economy.
Ripple right on track
Timely acquisitions and long-game strategies are causing Ripple’s star to rise.
The company, the fifth-largest crypto firm by market cap, is also putting its weight behind digital asset treasury Evernorth to accumulate XRP.
Evernorth has teamed up with special purpose acquisition company Armada Acquisition Corp II with the intention of listing on the Nasdaq.
This will result in the creation of the largest publicly-traded XRP treasury company.
Another Ripple addition is Canadian payments infrastructure platform Rail, a cross-border payments specialist.
Rail already drives 10% of all global B2B stablecoin payment volume.
Stablecoin refers to cryptocurrencies which are tied to strong traditional currencies like the US dollar. They are thus considered stable compared to others which are not pegged to high-performance legal tender.
Ripple was drawn to the company for its established relationships with the banking sector and compliance infrastructure.
Rail itself describes Ripple as “a one-stop shop for financial institutions and enterprises, providing simple, secure, compliant tools to store, trade and move value”.
Ripple has set its sights on making XRP an asset for efficient settlements of payments globally as crypto sweeps across the international financial landscape.
On–Demand Liquidity takes off
The effect of Ripple’s purchases and strategic collaborations is inspiring confidence in the market.
The Ripple price is bullish for the foreseeable future.
Interest in its On-Demand Liquidity (ODL) service is also growing in Africa and Asia – key regions in its global growth plan.
Africa is perceived as particularly fertile ground for the ODL offering.
Effective payment solutions in a region historically blighted by poor banking infrastructure can be the catalyst for more communities on the continent being able to improve their economic prospects.
The Motley Fool, which publishes on the Nasdaq website [https://www.nasdaq.com], suggests that should Ripple continue to build financial-grade infrastructure, expand in regions that control capital flows and entrench its stablecoin as a default settlement tool, even greater success should follow.
Ripple choosing stablecoins is also a major signal of its strategy to move beyond the speculating space.
For the company, operating at the infrastructural level is where the greatest opportunity now lies.
