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Ripple’s Singapore Payment License: XRP Set to Play Key Role in ODL Transactions, Deaton Discusses Potential Impact on XRP Price

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  • Ripple received an In-Principle approval from the Monetary Authority of Singapore (MAS), making it one of less than 20 companies to achieve such feat.
  • XRP, despite being integral to Ripple’s license, showed no significant price reaction to this news.

Prominent pro-XRP attorney, John E. Deaton, has shared his perspective on Ripple’s recent accomplishment of securing an In-Principle approval from the Monetary Authority of Singapore (MAS). Deaton deemed the news as fairly significant, considering that fewer than 20 companies have managed to attain this type of license.

Interestingly, Deaton pointed out that although XRP will be a core part of Ripple’s licensed operations, the cryptocurrency’s price exhibited no marked reaction to this development. He argued that as all XRP holders are in a common enterprise with Ripple, one might anticipate that the XRP price would respond to such company milestones. However, XRP’s price remained in tandem with Bitcoin and the macroeconomic environment.

Deaton’s comments also tackled inquiries about whether the MPI license would enable On-Demand Liquidity (ODL) transactions to incorporate XRP. Australian lawyer Bill Morgan had previously queried Ripple’s president, Monica Long, about whether the license was linked to ODL transactions that include XRP. While Morgan suggested that not all ODL transactions use XRP, Deaton affirmed that the license would indeed allow the utilization of XRP.

Ripple made the news recently after gaining In-Principle approval for a Major Payments Institution license from the MAS. This license will empower Ripple’s subsidiary, Ripple Markets Asia Pacific, to expand the On-Demand Liquidity (ODL) solution in Singapore, which leverages XRP for cross-border settlements.

Despite the expectations for XRP’s price to surge following the announcement of Ripple’s In-Principle license, no significant upward price movement was observed. As per CoinGecko, XRP’s price merely increased from $0.50 to $0.52, similar to the slight gains recorded by most crypto assets at that time.

These observations raised questions regarding the SEC’s assertion that XRP investors and Ripple share a common enterprise. This claim was part of the SEC’s case against Ripple, accusing the company of offering XRP as an unregistered security. The legal tussle has persisted for over two years with no concrete date for a summary judgment decision. Nevertheless, Ripple remains optimistic about a resolution before the year’s end.

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AnnJoy Makena
AnnJoy Makenahttps://www.ethnews.com
Annjoy Makena is an accomplished and passionate writer who specializes in the fascinating world of cryptocurrencies. With a profound understanding of blockchain technology and its implications, she is dedicated to demystifying complex concepts and delivering valuable insights to her readers. Business Email: info@ethnews.com Phone: +49 160 92211628