Ripple has purchased Pantera Capital’s minority stake in Bitstamp, a European-based digital currency exchange.
Ripple extends its financial reach
Galaxy Digital Holdings revealed in its latest quarterly report that it had advised Pantera Financial resources, an American crypto- investment financing company, to sell its Bitstamp shares to Ripple.
Galaxy Digital’s CIO, Christopher Ferraro, likewise confirmed the decision in a conference call with shareholders earlier in the 30 days.
Nonetheless, he did not specify exactly why Galaxy Digital advised Pantera to offload the shares, leaving some observers to speculate on the parties’ intentions in the deal.
Reports by media reports, Pantera purchased about $10 Million worth of Bitstamp shares in 2013, just before the cryptocurrency exchange became a mainstay in the industry.
Based in Luxembourg, Bitstamp is one of the longest-running cryptocurrency exchanges, with a presence in over 50 countries.
The exchange is one of Ripple’s on-demand liquidity (ODL) partners. In addition, Bitstamp has expanded its services on the XRP Ripple (XRP) ledger by incorporating euro-backed IOUs into the network.
Ripple looking to dominate digital payments market
Ripple is well-known for its native XRP Ripple (XRP) crypto token and its cross-border payment system, and it has been expanding its reach within the financial industry.
The company has previously secured partnerships with major banks and financial institutions worldwide, including Santander, American Express, and Standard Chartered.
Ripple’s technology has likewise facilitated cross-border remittances in Mexico, the Philippines, and Thailand.
The deal betwixt Ripple and Pantera was completed for an undisclosed amount. Still, it is expected to provide Ripple with additional resources to develop its network and expand into new markets.
It comes when cryptocurrency exchanges are gaining increased attention from regulatory authorities and governments worldwide.
Ripple itself is at the center of a long-running legal battle with the United States Securities and Exchange Commission (SEC) over states that, since its inception, the company has raised greater than $1.3 Billion by selling unregistered securities.
The case, which could significantly affect the broader cryptocurrency industry, is expected to be decided in the 1st half of 2023.