Ripple‘s Rocky Road to Grayscale347

Ripple, the San Francisco-based fintech company behind the Ripple payment network and XRP cryptocurrency, has been in talks with Grayscale Investments, the world's largest digital asset manager, for over a year about the possibility of Grayscale launching a XRP trust.

A Grayscale XRP trust would allow institutional investors to gain exposure to XRP without having to directly buy and store the cryptocurrency themselves. This would be a significant development for XRP, as it would provide a new and more accessible way for institutional investors to invest in the asset.

However, the talks between Ripple and Grayscale have been reportedly rocky. In April 2021, Grayscale CEO Michael Sonnenshein said that the company was "still evaluating" the possibility of launching a XRP trust. In July 2021, Ripple CEO Brad Garlinghouse said that he was "disappointed" that Grayscale had not yet launched a XRP trust.

There are a number of factors that may be preventing Grayscale from launching a XRP trust. One factor is the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC has accused Ripple of selling XRP as an unregistered security. Ripple has denied the allegations, but the lawsuit has created uncertainty around the status of XRP.

Another factor is the regulatory landscape for cryptocurrencies. The SEC has been cracking down on cryptocurrency exchanges and other crypto-related businesses. This has made it more difficult for Grayscale to launch a XRP trust that complies with all applicable regulations.

Despite the challenges, Ripple is still hopeful that Grayscale will eventually launch a XRP trust. In May 2022, Ripple announced that it had hired former Grayscale executive Cory Johnson to lead its institutional sales efforts. This hire suggests that Ripple is still committed to working with Grayscale to launch a XRP trust.

Whether or not Grayscale launches a XRP trust, the company's decision will have a significant impact on the future of XRP. If Grayscale does launch a XRP trust, it would provide a major boost to the asset by making it more accessible to institutional investors. However, if Grayscale does not launch a XRP trust, it would be a setback for Ripple and could hurt the price of XRP.

2025-02-21

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