In a significant development, Ripple joined the International Swaps and Derivatives Association (ISDA), placing itself at the forefront of the derivatives market valued at a staggering $1.2 quadrillion.
This move aligns Ripple with prominent industry leaders such as J.P. Morgan, Goldman Sachs, and BNY Mellon, solidifying its position within traditional financial systems.
This particular membership category caters to technological solution providers and exchanges integral to the derivatives ecosystem and Ripple now stands equal with big players and elite groups in the high cadre of the crypto community. This move is a declaration of its ambitions and a sign of potential growth.
Ripple’s Entry Into The Prestigious Circle
The approval of Ripple’s entry into the ISDA marks a noteworthy achievement. The association, comprising more than 1,000 institutions spanning 79 countries, sets the benchmarks and guidelines for the global derivatives market.
A famous X ( formerly known as Twitter) user and a Ripple advocate JackTheRippler shared the news in a recent tweet which triggered excitement from many users.
• Société Générale et al
• directors J.P. Morgan
• CME Group
• Goldman Sachs
• BNY Mellon
• London Stock Exchange
1000+ Institutions are… pic.twitter.com/6yzSxfzhe4
— JackTheRippler ©️ (@RippleXrpie) August 5, 2023
By joining this distinguished league, Ripple underlines its commitment to bridging the gap between the realm of cryptocurrency and the world of traditional finance.
This development comes after Ripple launched its own Central Bank Digital Currency (CBDC) platform to enable governments to create their own digital currencies.
The firm is also looking to enter the real-world assets (RWAs) sector as it believes the tokenized assets market could rise as high as a $30 trillion market cap.
Impact On Ripple And Beyond: A Ripple Effect
With the recent legal clarity surrounding XRP due to a favorable ruling, Ripple’s engagement with the ISDA presents opportunities for deeper collaboration and the wider acceptance of cryptocurrencies within the traditional financial realm.
The cryptocurrency community is buzzing with enthusiasm over Ripple’s new affiliation. This calculated maneuver signifies Ripple’s intent to firmly establish its presence in the financial landscape, enabling strategic alliances with major financial institutions and unlocking opportunities for the XRP cryptocurrency.
Although the immediate impact on Ripple’s valuation remains uncertain, this strategic collaboration sets the stage for prospective growth. Ripple’s inclusion among well-established institutions widens doors for increased acceptance and adoption of cryptocurrencies within conventional financial systems.
Despite the latest development, XRP’s price has not responded positively. Rather, the altcoin continues to see losses on both the daily and weekly charts. It is currently trading at $0.61, translating to 2.11% and 12.01% losses on the daily and weekly charts, respectively.