Luxembourg-based crypto exchange, Bitstamp has disclosed that it will be launching a derivative exchange on the XRP Ledger in collaboration with the blockchain giant company, Ripple. The update has resonated well across the crypto community as the XRPL use case continues to expand, which might potentially impact the price of the native token, XPP.
The Head of Strategic Partnership at Bitstamp, Eva Gartner, revealed this during the 10th episode of the “Built on XRPL” series and pointed out that the venture will be launched in the coming months.
Bitstamp and Ripple Extends Partnership
The Bitstamp executive expressed excitement about the company’s impending derivatives exchange and hinted that the platform would encourage the use of cryptocurrencies.
Particularly, several sources, including Abdullah Nassif, host of the Good Morning Crypto podcast, have verified that Bitstamp plans to introduce the derivatives market on the XRP Ledger (XRPL) blockchain.
Nassif claims that Bitstamp and Ripple will work together to develop the derivatives exchange on the XRPL. Notably, Bitstamp has introduced several cryptocurrency-related products, including stablecoins, by utilizing the XRP Ledger. As of right now, Bitstamp has released several stablecoins on XRPL linked to the USD, GBP, EUR, AUD, JPY, and CHF.
Ripple’s Stake in Bitstamp
Moreover, Bitstamp and Ripple have a close working partnership that dates back almost seven years. Enhancing this partnership, Ripple bought a minority investment in the business last year after purchasing shares that had been held by Pantera Capital.
It’s unclear if Bitstamp’s use of Ripple technology will provide the forthcoming derivatives exchange a competitive advantage over BitMEX and other derivatives trading platforms.
Robinhood Re-Lists XRP Following Ripple’s SEC Legal Victory
Meanwhile, Robinhood is working hard to finish acquiring Bitstamp. As previously reported, the $200 million deal is anticipated to close next year, pending regulatory approval. With the acquisition, Robinhood would reach a wider audience in the US, Asia, the EU, and the UK, particularly among institutional clients.
Crypto participants predict that Robinhood will continue Bitstamp’s support for XRP and the XRPL after the deal closes later this year. It’s interesting to note that by discreetly relisting XRP, Robinhood recently made a significant contribution to the XRPL ecosystem. However, only Robinhood users in the EU can currently access XRP. When the trading platform intends to list XRP for its US users is still unknown.
Final Thoughts
Bitstamp’s partnership with Ripple to launch a derivatives exchange on the XRP Ledger (XRPL) marks a significant development in the cryptocurrency ecosystem. This collaboration is set to leverage Ripple’s blockchain technology, which could enhance the liquidity and use cases for XRP and other assets on the platform. The derivatives market, a complex and highly competitive space, may give Bitstamp an edge by utilizing the speed and efficiency of the XRPL, potentially positioning it as a strong contender against platforms like BitMEX.
Ripple’s ongoing partnership with Bitstamp, now spanning almost seven years, strengthens both companies’ efforts to expand the XRPL ecosystem. As Bitstamp has already introduced stablecoins and other products on the XRPL, the new derivatives exchange could further solidify the ledger’s utility in the cryptocurrency world. Meanwhile, Robinhood’s acquisition of Bitstamp and its recent relisting of XRP in the EU highlight the growing interest and momentum around XRP and the XRPL, suggesting that the native token could see increased adoption and attention from both institutional and retail investors.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.