XRP's Rising Tide: Breakout Looms as Ripple and Crypto Revolutionize Finance
Abraham George Crypto Musings
I haven't written much about Ripple and XRP lately because I've been traveling through India. I'm currently holidaying at a beach resort in Kovalam, close to my hometown Thiruvananthapuram.
While I've been enjoying my holiday, I've gained insights into payments and how technological advancements in this everyday function will revolutionize India. The economic benefits are vast, although not easily measurable. The Indian retail payment system outperforms those of the US, Europe, and Australia in terms of efficiency.
Most of our life's transactions end with a payment. If you can make these payments faster, happening in seconds and available 24/7, you're onto something significant.
The biggest crisis in the financial sector was due to a lack of liquidity and trust in each other, as seen during the Global Financial Crisis (GFC). Ben Bernanke, the Fed Chairman during the GFC, urgently met with Congress to address liquidity and trust issues between banks and propose measures to stabilize the markets.
To illustrate, there is no global food shortage at a gross level, but there's massive food wastage in affluent countries like North America, Europe, and the Gulf states. The challenge is transferring excess food to needy countries promptly, which technology has yet to enable.
Similarly, there's a substantial amount of trapped capital globally, estimated at around 27 trillion dollars, unable to be utilized due to outdated technologies. Companies, with XRP leading the way, are employing blockchain, artificial intelligence, and distributed technology to release this trapped capital, transforming world finance. Prominent figures like Larry Fink, the world's largest asset manager, emphasize the shift towards digitalization and tokenization.
Now, let's delve into some key points related to XRP and the crypto markets since my last article.
Firstly, there's a settlement in the FTX debacle, where Sam Bankman-Fried has been found guilty on all seven charges and is awaiting sentencing by March 28th. However, more revelations will likely surface, especially concerning the SEC's involvement with SBF and Gary Gensler's oversight (or lack thereof).
Secondly, eight of the world's leading asset managers, with BlackRock at the forefront, have applied for a Bitcoin spot ETF license with the SEC. It's only a matter of time before the SEC grants these licenses, marking a significant development as institutional investors make proper allocations in the crypto space.
Now, turning to XRP, it's making significant strides. On October 3, 2023, Judge Torres denied the SEC's request for an interlocutory appeal in favor of Ripple Labs, dealing a blow to the SEC. Following this, the SEC withdrew charges against Chairman Chris Larsen and CEO Brad Garlinghouse, alleging securities law violations. It's likely the SEC realized the weakness of their case—the only pending issue for Ripple concerns institutional sales, with potential settlement discussions on November 9. If no settlement occurs, Judge Torres will establish a timeline for resolution.
On the business front, Ripple has formed a substantial partnership with the reliable prime broker Uphold. Throughout the SEC saga, Uphold was the only US brokerage to continue trading XRP and is set to benefit from this collaboration. The partnership will expand Uphold's volume, especially in the enterprise market. They are expected to go live with this partnership next month.
Finally, the Dubai Financial Services Authority (DFSA) has approved XRP under its virtual assets regime. This approval, along with Bitcoin, Ethereum, and Litecoin, will boost XRP's usage in the MENA region, where 20% of Ripple's revenue currently comes from. Major financial institutions from the Dubai International Financial Centre (DIFC) will likely start using XRP.
The annual Ripple Swell conference will take place in Dubai on November 8 and 9, and it's expected to have a significant turnout by invitation only. Speculations about major announcements are in the air, and we'll eagerly await them.
Technically, XRP is poised for a significant upside breakout, and the catalyst could potentially emerge from the upcoming conference.
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Abraham George is a seasoned investment manager with more than 40 years of experience in trading & investment and multi-billion dollar portfolio management spanning diverse environments like banks (HSBC, ADCB), sovereign wealth fund (ADIA), a royal family office, and a hedge fund.