Ripple CEO Allocates $1 Billion for Expansion Beyond Liquidity Offerings

Updated: 22 May 2023

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Brad Garlinghouse, the CEO of Ripple, announced at the recently concluded Dubai Fintech Summit that his company plans to expand its services beyond liquidity provision.

Ripple, a San Francisco-based fintech firm, started as an enterprise-focused cross-border settlement service provider. However, Garlinghouse highlighted in his speech that the company aims to grow beyond ‌liquidity and payment services. A popular XRP influencer, Eri, shared the speech clip on her Twitter account with her followers.

Ripple Aims to Expand Beyond Cross-Border Liquidity

Ripple’s CEO, Brad Garlinghouse, recognized the four fundamental elements of blockchain: liquidity, custody, compliance, and tokenization. He stressed that Ripple’s aspirations go beyond being a provider of cross-border liquidity. Garlinghouse highlighted the need for Ripple to venture into other sectors within the blockchain industry.

Ripple aspires to be more than just liquidity & payments.

Acquisitions in crypto-friendly markets (like UAE and Switzerland), for expansion. pic.twitter.com/yTRMEasngN

— ?Crypto Eri 220k+ Followers (Beware of Imposters) (@sentosumosaba) May 18, 2023

The team is engaged in strategic planning, exploring possibilities for organic expansion and mergers and acquisitions (M&A) to achieve their goals.

Ripple plans to actively acquire other firms through mergers and acquisitions to expand its services while leveraging its existing resources and expertise to diversify its offerings.

Garlinghouse clarified that his company was actively considering acquisitions and expressed a keen interest in purchasing firms operating in blockchain and crypto-friendly markets. He highlighted the UAE and Switzerland as countries that provide regulatory clarity for crypto entrepreneurs, highlighting their representation at the summit.

Garlinghouse confirmed that Ripple currently possesses over $1 billion in cash on its balance sheet and intends to actively invest this capital in the growth of other areas within the blockchain technology sector. He emphasized the company’s commitment to using these funds for acquiring other firms and improving its internal infrastructure.

Ripple Expands with Acquisition of Swiss Firm Metaco

Ripple has started its expansion strategy by acquiring Metaco, a prominent Switzerland-based digital asset custody and tokenization firm. The company announced the acquisition via a tweet, showing its entry into the Swiss market. Metaco’s expertise in tokenization and custody aligns with the fundamental aspects of blockchain technology, which Ripple CEO Brad Garlinghouse emphasized.

Today, we are proud to announce Ripple has acquired @metaco_sa, becoming the sole shareholder of the Swiss-based provider of digital asset custody and tokenization technology.

Learn more: https://t.co/GrI3u13iDT

— Ripple (@Ripple) May 17, 2023

Ripple’s expansion into Switzerland doesn’t surprise, considering the regulatory challenges it has faced with US authorities in recent years. Switzerland offers a more favorable regulatory environment for cryptocurrencies and blockchain technology than the United States.

Garlinghouse himself acknowledged this during his speech at the Fintech Summit. Furthermore, in April, Ripple revealed its plans to expand into London, as disclosed by Stuart Alderoty, the company’s chief legal officer. Additionally, Ripple has opened a new office in Dubai to strengthen its presence in the Middle East and North Africa (MENA) region.

Ripple and XRP: Empowering Digital Payment Transformation in 13 African Countries

CV VC and South Africa’s Standard Bank collaborated to release the “African Blockchain Report 2022” in late April 2023. The report reveals that Ripple and XRP are extensively utilized in 13 African countries, which have gone unnoticed within the XRP community.

According to the report, there are significant opportunities for digital payment service providers, including Ripple, in Africa. Despite the region’s progress in recent years, there remains untapped potential. The report predicts a 20% growth in electronic payments revenue by 2025, amounting to $40 billion.

One page of the report is dedicated to highlighting Ripple’s technology. It emphasizes the innovative solutions offered by Ripple, showcasing its ability to facilitate secure and efficient cross-border transactions and enhance financial inclusion in Africa.

The report endorses Ripple and its XRP-powered On-Demand Liquidity (ODL) solution. It summarizes Ripple’s presence in several African countries, including Benin, Burkina Faso, Côte d’Ivoire, Egypt, Ghana, Kenya, Mali, Niger, Nigeria, Senegal, South Africa, Togo, and Uganda.

Digital payments make up less than 10% of Africa’s total payment volume. However, the report argues that using blockchain technology and cryptocurrencies for remittances can cause significant cost savings. On average, these solutions can reduce fees by 6.3%, with sub-Saharan Africa potentially experiencing even higher protection of 8.46% compared to traditional methods.