XRP Jumps After Santander Launches Ripple-Powered International Payment System
The value of XRP surged on Thursday, outpacing the broader crypto market rally after its parent company along with Santander launched the world’s first international payment service.
XRP/USD Price Levels
Ripple’s XRP currency has gained 20% over the past 24 hours, higher than the 15% gain reported across the crypto market. The XRP/USD exchange rate touched a session high of $0.663 in late afternoon trade and was last seen hovering just below $0.64.
The price resurgence has pushed XRP into overbought levels, according to the Relative Strength Index (RSI). Price action shows accelerated momentum, with the 50-day moving average forming a bullish crossover with the 200-day MA. Both averages are lagging behind the actual price.
With the latest rally, Ripple’s market cap has swelled to $24.7 billion on total trade volumes of $1.4 billion. South Korean exchanges continue to dominate the XRP market, with a combined 40% of daily turnover generated on the Bithumb and Upbit exchanges.
Ripple Champions International Payments
In a major milestone, Ripple and Santander have officially launched “the first blockchain-based international money transfer service,” according to a Thursday press release from the Spanish banking group.
The new service, dubbed One Pay FX, allows retail customers to complete international transfers on the same day. Four countries are part of the initial roll out: Spain, U.K., Brazil and Poland. Only Santander customers will be eligible to test the service.
Development of One Pay FX was a multi-year effort designed to reduce both cost and waiting time for international money transfers. While the platform is powered by Ripple’s blockchain technology, it does not require the use of XRP tokens.
Financial institutes have been keen to partner with Ripple to develop new liquidity and clearing systems, but less willing to adopt the digital currency itself. This has sparked a broader debate about the actual value of XRP as a long-term investment. That said, we’ve argued before that Ripple’s fundamentals are growing stronger by the day thanks to the company’s intent in solving real world problems and broadening institutional appeal.
Ripple ‘Absolutely Not a Security’
The Ripple company has pushed back against speculation that XRP could be labeled a security token by federal regulators.
Cory Johnson, Ripple’s chief marketing strategist, recently told CNBC “we absolutely are not a security” and that, based on historical precedent, the token does not “meet the standards for what a security is…”
While many cryptocurrencies are thought to be securities, XRP is near the top of the list of potentials due to a large concentration of tokens being held at the parent company. The San Francisco-based Ripple startup owns roughly 60% of XRP. That said, the U.S. Securities and Exchange Commission (SEC) has not passed judgment on XRP specifically.
Regulators have indicated that securities laws generally apply to cryptocurrencies, although each asset has its own set of characteristics that may put it outside the purview of federal oversight. In general, assets like bitcoin and Ethereum are not considered securities.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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