Why Ripple CEO thinks, Coinbase should add XRP to its platform
Ripple has been swinging a lot these days. The third most valuable cryptocurrency is in a lot of speculation that it will available for trade on Coinbase. While all these are just rumors, the price of XRP shot up by 15%. XRP has ranged from increasing by 50 cents to almost $4 amidst the rumors of coinbase listing the cryptocurrency in their offerings.
XRP that is being used for cross-border payments by many giant companies/banks to process payments. Furthermore, it goes without saying that Ripple is not offered in a lot of exchanges. But this hasn’t stopped XRP from becoming third-largest cryptocurrency. It is just behind Ethereum, with $21 billion marketcap.
While coinbase is yet to welcome XRP officially, Brad Garlinghouse, CEO of Ripple, said on Thursday, that Coinbase should welcome XRP on their platform. Coinbase, that already allows to trade Bitcoin, Ethereum, Bitcoin Cash & Litecoin and also is about to welcome fifth cryptocurrency, Ethereum Classic.
XRP’s $21 billion market capitalization, that exceeds market capitalization of all the cryptocurrencies. XRP, that owns more than half of XRP’s digital tokens, reports say that they have tried to pay $1 million to Coinbase to list it.
AS mentioned above, many financial institutions across the world use ripple’s ecosystem to power their business. Furthermore, some companies of those also use XRP token to speed up and lower the international payment cost. With all this happening, the price of XRP is going to increase in coming time as more and more banks rely on Ripple for their infrastructure management.
“As we solve problems at scale for institutions, I think it’s in Coinbase’s interest to participate in that,” Garlinghouse said on Thursday. However, in it was in January when coinbase made a public appearance and confirmed that they are not going to add any other cryptocurrency any soon. Furthermore, Coinbase is very particular about the regulator approved cryptocurrencies. And it will not add any cryptocurrency that is not approved by the regulatory authorities.
Additionally, including Coinbase along with many American exchanges have been hesitant to add XRP as it is not deemed by regulators as securities. Designation for which requires the cryptocurrencies to have additional licenses and approval from regulatory authorities.
An announcement by US SEC that Ethereum does not meet the qualifications of being called ‘a security’, thanks to its decentralized nature. This is exactly what has raised chances or rumors of XRP being chosen instead of Ethereum. “Systems that rely on central actors whose efforts are a key to the success of the enterprise” would be subject to “application of the securities laws,” SEC spokesperson William Hinman said, however, he hasn’t mentioned XRP explicitly.
To this, Gralinghouse says “I think it’s really clear that XRP is not a security,” at a conference. He explains that XRP is no way a security, both XRP, and ripple exists independently. XRP will continue to function even if the company fails to. To be sure, we will have to wait for official updates from authorities, we would like you to stay tuned with us to be informed about this.