Why did Ripple buy shares from Bitstamp? Ripple manager explained
Choosing to increase its investments abroad due to legal tensions and uncertain regulations in the USA, Ripple took another step that serves this purpose. As it was revealed the previous day, Ripple bought a stake in the European cryptocurrency exchange Bitstamp. The company did not make this purchase publicly in the first quarter.
The reason for the share purchase was a matter of curiosity
After Ripple bought shares from Bitstamp, it was a matter of curiosity why the company made this move. Monica Long, general manager of Ripple, responded to the growing questions. In a statement to The Block, Long stated that Ripple has taken action to expand its operations beyond the USA and aims to diversify its services in order to strengthen its position in the global market, and that they have taken the last steps in this direction. Long stated that Bitstamp has a long history in the crypto industry and stands out especially in the institutional space. Expressing that the exchange is a valuable partner for Ripple, Long said, “Therefore, we are excited about the opportunity to invest in Bitstamp and deepen our partnership.” said.
“We have been collaborating since 2017”
The Ripple executive emphasized that the company is working with many cryptocurrency exchanges around the world, including Bitstamp, to make its payment product more useful. This collaboration includes features such as mechanisms for buying and selling fiat currencies (fiat on/off ramps) and integration of crypto money services.
Bitstamp CEO Jean-Baptiste Graftieaux said that Ripple and Bitstamp have had a partnership since 2017. According to Graftieaux, the next phase of investment aims to increase the security, reliability and accessibility of crypto for institutions worldwide, which is a source of great satisfaction for them.
Ripple has accelerated purchases recently
Ripple has made a number of acquisitions recently. Earlier this month, the crypto payments firm acquired Metaco, a Swiss-based crypto custody startup, for $250 million.
The latest deals come at a time when Ripple has been in contention with the US Securities and Exchange Commission for years. In 2020, the SEC accused Ripple of illegally raising $1.3 billion through the sale of XRP, and also sued CEO Garlinghouse and co-founder Christian Larsen. A verdict is expected soon in the case, which has been going on for more than two years.