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Wednesday, October 9, 2024

XRP Price Outlook: Ripple has this major investor in mind

Ripple wants to get involved in the banking world. There is currently a big name in the room. Is a US financial giant interested in the XRP token?

In a strategic move, Ripple’s Chief Technology Officer, David Schwartz, recently presented the merits of the XRP ledger to Franklin Templeton, a financial powerhouse ranking among the world’s largest asset managers. This outreach comes amid increasing interest in blockchain technology within the financial sector.

Franklin Templeton had expressed its enthusiasm for various blockchain networks via a tweet, prompting Schwartz to underscore the exceptional performance of the XRP Ledger. Notably, this ledger has demonstrated remarkable efficiency, handling millions of transactions for Ripple over the span of a decade.

As a major player in the financial landscape, Franklin Templeton manages a colossal $1.4 trillion in assets. The firm has previously showcased an interest in exploring the potentials of blockchain technology, aligning with the broader industry trend of financial institutions acknowledging the significance of distributed ledger technologies.

However, despite the positive outreach to institutional investors, the XRP community has been grappling with the lackluster performance of its associated cryptocurrency. Currently hovering around $0.55, XRP has faced challenges, significantly underperforming compared to Bitcoin and other leading altcoins, despite the general market uptrend.

The XRP token witnessed a hopeful surge to approximately $0.82 in July 2023, fueled by optimistic developments following the resolution of Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC). However, the token struggled to maintain this peak, experiencing a subsequent drop by about a third.

Recent market speculations have fueled discussions about the potential launch of an Exchange-Traded Fund (ETF) for the Ripple token, XRP. Yet, given the revived scrutiny from the SEC, the likelihood of regulatory approval for such an ETF appears low. Centralization concerns have been raised, with Ripple having control over the largest XRP wallets, contributing to the skepticism surrounding regulatory green lights.

Importantly, there’s a crucial distinction between Ripple and XRP. Even if Ripple manages to secure a robust position in the banking sector, uncertainties loom over the seamless integration of the XRP token into mainstream financial operations.

Looking ahead, if Ripple achieves its long-standing goal of going public, the future trajectory of its shares could potentially be more captivating for investors than the company’s cryptocurrency. This shift in focus reflects the evolving dynamics within Ripple’s strategy, positioning itself not just as a cryptocurrency entity but as a comprehensive player in the broader financial landscape. Investors keen on Ripple’s market trajectory will likely keep a close eye on its strategic moves and the potential implications for both its shares and the XRP token.

Akshit Yadav
Akshit Yadav
Akshit is a dynamic young voice in the blockchain and cryptocurrency space, known for his innovative insights and fresh perspectives. Passionate about the intersection of technology and finance, he brings a youthful energy to his exploration of decentralized systems and digital currencies.

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