Ripple Defies US Blockade, Expands in Brazil with Mercado Bitcoin Partnership

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As a seasoned researcher with a keen interest in the dynamic world of fintech and digital assets, I am consistently intrigued by the resilience and strategic moves of companies like Ripple. Despite the ongoing legal battle with the SEC, Rippe has managed to expand its footprint in Latin America, a region that seems to be a hotbed for crypto innovation.

Ripple, a prominent service provider for digital assets, has joined forces with Brazil’s foremost cryptocurrency trading platform, Mercado Bitcoin. This partnership represents a significant breakthrough, potentially circumventing the latest obstacles imposed by the U.S. administration.

On October 2nd, the SEC decided to file an appeal’s notice in the ongoing court case, with the intention of overturning Judge Analisa Torres’ previous ruling.

Ripple Expands to LATAM Despite SEC Battle

It was predicted by legal experts that the Securities and Exchange Commission (SEC) might challenge the 2023 verdict, which declared that the sale of XRP did not involve a securities transaction. Judge Torres determined that XRP qualifies as a digital asset but does not fulfill all the requirements of the SEC’s Howey test to be classified as an investment contract. As such, this decision indicates that XRP is not inherently a security.

Despite initially focusing on its current operations, the company has chosen to expand its reach even more, now targeting Latin American markets. According to their recent announcement, the organization is utilizing Mercado Bitcoin’s services as a means to strengthen its internal financial operations, particularly between Brazil and Portugal.

The idea is to offer support for international payments both to corporate and retail customers, and facilitate transactions in Brazilian Reais. This makes Mercado Bitcoin the first user of enterprise-focused payment solution in Latin America.

As per the official statement:

Ripple Payments provides distinctive features that greatly benefit cryptocurrency companies by simplifying processes, enhancing liquidity management, and boosting profitability due to swift, immediate transaction settlements.

Jordan Abud, head of banking at Mercado Bitcoin, stated that this partnership represents a chance for the exchange to expand its offerings and go global. Notably, Brazil serves as a comfortable market since Mercado Bitcoin started operations there in 2019 and also introduced the Brazil Fund, aiming to nurture the growth of the XRP Ledger (XRPL) within the nation.
Latin America Domination with Stablecoin and Payments
Ripple is a company specializing in financial technology, primarily facilitating swift global money transfers. They are also responsible for XRP, currently ranking as the seventh most valuable cryptocurrency based on market capitalization. However, in 2020, they found themselves embroiled in a lawsuit brought forth by the U.S. Securities and Exchange Commission (SEC). The SEC claimed that Ripple, based in San Francisco, violated laws when it sold its digital token without registering with the agency as a security.
A day following Bitwise Asset Management Inc.’s submission of an application to invest directly in XRP, the world’s seventh-largest digital token through an ETF, the SEC made its previously mentioned appeal. This move comes after the SEC experienced a partial win against them last year, which was considered a triumph for the digital asset industry.
The business is carrying on its expansion in Latin America following an agreement with Colombia’s central bank regarding the exploration of technology for central bank digital currencies.
Ever since it established its office in Brazil, the company views this region as a significant “center of gravity” for advancements in cryptocurrency, with its dual appeal stemming from high user adoption rates and growing financial inclusivity.
Brad Garlinghouse, CEO of Ripple Labs, has announced that their U.S.-dollar pegged stablecoin, RLUSD, will be launched within a few weeks rather than months. He further clarified that while planning to initially roll out the stablecoin in the United States and then expand globally, Ripple is actively cooperating with U.S. regulatory bodies to ensure compliance before launch.

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2024-10-03 18:32