BitGo’s Regulatory Efforts Could Boost Ripple Price
Could the price of Ripple (XRP) be set to improve following BitGo’s regulatory approval? Tracking the XRP price live on September 17, the value in US dollars was down 2.24% on the previous day’s trading. However, in a bid to offer a more secure trading platform for institutional investors, BitGo has sought and received the regulatory approval of The South Dakota Division of Banking. The tech start-up can now call itself a “custodian for crypto and other digital assets”. In practical terms, this means it can offer an exchange that operates under strict financial codes.
“The trust company will enable us to offer a qualified custodial offering that is regulated, that has the money laundering and know your customer requirements,” Shahla Ali, BitGo’s chief compliance and legal officer, told CoinDesk.
BitGo Offers a More Attractive Way to Buy Ripple
With the backing of one state, BitGo could soon receive the green light in other parts of the US, something that will boost the company’s standing in the crypto investment arena. The upshot of this is that any asset listed on BitGo could receive an influx of new investment from corporate entities that have been calling for a regulated point of entry. Ripple price charts have seen their ups and down over 2017 and 2018. On January 1, 2017, the Ripple price in US dollars was $0.006494. By the close of the year, XRP had soared beyond $3 but the recent bearish trend has seen the digital token take a tumble.
One of the enduring issues affecting the price of XRP is its relationship with Ripple. Although Ripple’s xRapid platform is built around XRP, the two are distinct entities. Despite Ripple doing its best to distance itself from the asset, the Ripple/XRP debate is one that’s drawn attention from the US Securities and Exchange Commission (SEC). Whether or not XRP is a financial security is a matter for the courts and not individual investors. However, the issue plays into the regulated/unregulated dynamic that’s plagued the price of almost every cryptocurrency out there.
Things Are Moving in the Right Direction for Ripple
Although the BitGo’s new status as a crypto custodian won’t bring an end to these concerns, it is another step in the right direction. On top of this, those tracking the price of Ripple will be buoyed by the recent news that the Royal Bank of Canada (RBC) is backing xRapid. Praising the platform’s ability to settle cross-border payments faster and cheaper than traditional systems, the national bank could become one of its biggest users when xRapid goes live later in 2018. If that happens, XRP will have more utility on a commercial level and, in turn, more value as an asset.
Although the price of XRP in 2018 has fallen victim to the market’s bearish trend, 2019 could be a turning point. With BitGo offering a regulated way to buy Ripple and xRapid set to go live as a commercial product, the future is clearly bright. Even though legal issues may be preventing XRP from fulfilling its true potential, things will eventually untangle themselves. When that happens, a Ripple price boom is almost inevitable and something investors should be prepared for.