Latest news with #RippleUSD
Yahoo
07-08-2025
- Business
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Ripple to buy Canadian stablecoin platform Rail for $200M
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Cryptocurrency firm Ripple will acquire Toronto-based stablecoin platform Rail in a $200 million deal, the companies said Thursday. The acquisition is set to streamline Ripple's operations by adding virtual accounts and automated back-office infrastructure to a framework that uses 60 licenses to manage customers' payment flows, the companies said. 'Stablecoins are quickly becoming a cornerstone of modern finance, and with Rail, we are uniquely positioned to drive the next phase of innovation and adoption of stablecoins and blockchain in global payments,' Ripple President Monica Long said in a statement Thursday. 'Ripple has one of the most widely used digital asset payment networks in the world, and this acquisition underscores our commitment to helping our global customer base to move money wherever and whenever they need.' The acquisition continues a fruitful year for Ripple. The company said in April it would buy prime brokerage Hidden Road in a deal worth $1.25 billion. That move came roughly two weeks after the Securities and Exchange Commission indicated it would drop its appeal against Ripple, ending a four-year court fight over whether the company's XRP token was an unregistered security. A federal judge in July 2023 ruled that the sale of XRP on public exchanges didn't violate federal securities laws but that the token was a security when sold to institutional investors. Ripple was ordered to pay $125 million in penalties. But the SEC, under new leadership appointed by the Trump administration, agreed to a settlement in which $75 million of that money would be returned to Ripple. The judge denied the penalty reduction last month. Meanwhile, BNY agreed in July to custody the reserves of Ripple's new stablecoin, Ripple USD. Senate lawmakers in June passed the Genius Act, meant to create a regulatory framework for the issuance of stablecoins. That, undoubtedly, could fuel wider adoption of the digital asset and enable finance leaders to consider more use cases for it. A Ripple-Rail partnership would allow stablecoin pay-ins and pay-outs without requiring customers to hold crypto on their balance sheets, the companies said Thursday. It also could enable them to manage multiple payment types, including third-party payments and internal treasury flows, through one platform. The partnership, additionally, would allow customers to spend or receive digital assets without having to open dedicated crypto bank accounts or wallets on centralized exchanges, the companies said. 'Over the last four years, Rail built the fastest way to settle business payments internationally using stablecoins,' Rail CEO Bhanu Kohli said in a statement Thursday. 'Ripple shares our vision, and together, we're excited to bring our innovation to the millions of businesses that move money internationally.' Rail is expected to process more than 10% of the $36 billion in global business-to-business payments made in 2025, Kohli noted, citing research from Artemis Analytics. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-08-2025
- Business
- Yahoo
Prediction: USDC Will Be Worth $1 in 10 Years
Key Points USDC is designed to stay at $1, and that's likely to hold true for years to come. Stablecoins like USDC aren't really investment vehicles, but tools that make your crypto-trading experience a little smoother. 10 stocks we like better than USDC › I'm not sticking my neck out very far today. It's still worth saying, though: The USDC (CRYPTO: USDC) stablecoin will be worth $1 per coin in 2035. There you go. The same coin is also worth $1 today, and I don't expect much volatility over the next decade. Any time you sample USDC's latest price, it should be no more than 0.1% away from the intended value. Right now, for example, it's 0.02% below the $1 price target, and that's not a typo. I really mean two one-hundredths of one percent. That's how stable this coin is. I could say the same thing about Tether (CRYPTO: USDT), Ripple USD (CRYPTO: RLUSD), and TrueUSD (CRYPTO: TUSD). Applying the same statement to algorithmic and crypto-backed options like Dai (CRYPTO: DAI) would be a slightly greater risk, but I'm feeling adventurous today -- all five of these robust stablecoins will be worth $1 in 10 years. And that's exactly what makes them valuable. Let me explain. The unsung heroes of your crypto toolbox A cryptocurrency that sticks closely to $1 for decades may not sound like a great investment. And you're right -- stablecoins exist for a different purpose. They don't build wealth over time and they don't execute smart contracts. Some of them offer reasonable interest rates, like a savings account in the cryptocurrency space. But generally speaking, stablecoins aren't great investments on their own. Most crypto investors end up using stablecoins from time to time -- perhaps without even noticing it. Let's say you just opened a Coinbase (NASDAQ: COIN) account, sending in $1,000 from a traditional bank account to fund your first crypto investments. The first thing that happens is that Coinbase converts the $1,000 dollar-based funding into USDC. Coinbase classifies your USDC balance as a "cash" position. It's presented right next to a US dollar balance, which is available if you insist but usually shows a zero-dollar total. You see, USDC is a much more convenient way for Coinbase to move dollar-based funds around in its systems. The company also has a direct financial interest in USDC, having co-launched it in a collaboration with Circle Internet Group (NYSE: CRCL) seven years ago. So Coinbase prefers trading in your dollars for USDC coins, and then you can treat that stablecoin exactly as you would manage an actual cash balance in the same account. Coinbase currently offers a 4.1% annual percentage yield on USDC coins, but direct dollar holdings don't earn any interest. Just one more reason to store your old-school cash in the newfangled stablecoin format. How USDC and Tether keep their dollar peg The largest stablecoins, like Tether and USDC, are backed by actual cash reserves. The coin managers match the total market value of their stablecoins with an equal amount of financial assets, usually in the form of interest-bearing federal Treasury bonds. That may sound boring, but it's a classic business model with strong echoes of traditional banking. It's a lucrative system, too. Circle Internet generated $1.66 billion of revenue from its interest-bearing cash reserves in 2024. The USDC backing accounts held $43.9 billion of cash equivalents at the end of last year. Coinbase reported $910.5 million of stablecoin revenues for the same period, reflecting its USDC interests. So there are strong ties between the stablecoin universe and the good old U.S. dollar. Stablecoins are not investments, but handy tools for moving money around in an all-digital system. And they form a user-friendly bridge between the two economies. I think of the decent interest rate as a thank-you note, rewarding me for helping Coinbase run a smoother trading platform. The risks behind algorithmic stablecoins The cash reserves behind leading stablecoins such as USDC, TrueUSD, and Tether give me confidence in their long-term robustness. Come back in five years, or 10, or 20, and I expect their prices to stay exactly where they are today. As long as their backers remain in business, the stablecoins will be worth a dollar. In a perfect world, I'd have the same unshakable confidence in experimental stablecoins like Dai. However, Dai's backers don't hold massive cash reserves. Instead, the stablecoin's $1 value relies on mathematical algorithms and some Ethereum (CRYPTO: ETH) holdings. Sudden shifts in Ethereum's valuation could move Dai's value far away from $1, at least temporarily. The algorithmic stablecoin meltdown of 2022 demonstrated the risks of this approach, though Dai's Ethereum basis should be reliable enough. That's why I'm keeping an asterisk next to this particular $1 price target. But yeah, most of today's leading stablecoins will surely be worth $1 per coin in 2025, including USDC. And that's alright. I'm not really investing in USDC, anyway. Do the experts think USDC is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did USDC make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,036% vs. just 181% for the S&P — that is beating the market by 855.09%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Anders Bylund has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy. Prediction: USDC Will Be Worth $1 in 10 Years was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
23-07-2025
- Business
- Yahoo
PNC, Coinbase team up on crypto-as-a-service
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. PNC customers will soon be able to buy, sell and hold cryptocurrency through the bank's new partnership with Coinbase. 'Partnering with Coinbase accelerates our ability to bring innovative, crypto financial solutions to our clients,' said PNC CEO Bill Demchak in a prepared statement Tuesday. 'We will also provide PNC's best-in-class banking services to Coinbase,' he said. 'This collaboration enables us to meet growing demand for secure and streamlined access to digital assets on PNC's trusted platform.' Coinbase is the nation's largest cryptocurrency exchange. As of February, it held nearly half a trillion dollars in assets, which would make it akin to the 21st-largest bank in the country, according to CEO Brian Armstrong. 'If you think of us more like a brokerage, we'd be the 8th largest brokerage today by AUM,' he wrote on social media platform X. Coinbase will support PNC's entry into the digital asset market with its crypto-as-a-service platform, 'which provides PNC with a powerful set of tools to develop a scalable, high-growth business, built on a foundation of uncompromising security,' said Brett Tejpaul, head of Coinbase Institutional, in a prepared statement Tuesday. The distance between the crypto realm and traditional finance has been closing in 2025 due to relaxed regulatory oversight and a push for federal crypto legislation. The GENIUS Act, signed into law by President Donald Trump on Friday, creates a regulatory framework for stablecoins. Meanwhile, the CLARITY Act, which would divide regulatory oversight between the Commodity Futures Trading Commission and Securities and Exchange Commission and create a framework for digital assets, is moving through the legislature. Several crypto-bank partnerships have been inked in recent months. BNY said last week that it would custody the reserves of Ripple's new stablecoin, Ripple USD, weeks after striking a similar partnership with Societe Generale regarding its CoinVertible USD. Digital native bank Green Dot announced a partnership with in May, offering banking and money management tools to the crypto exchange's U.S. customers through Arc, the bank's embedded finance platform. SoFi CEO Anthony Noto also said in May that his firm would re-enter the crypto business, which it exited in 2023, in the next six months. Brad Rustin, chair of law firm Nelson Mullins' financial services regulatory practice in Greenville, South Carolina, told Banking Dive in May that 'lots and lots and lots of banks' are talking about getting in on crypto amidst the Trump administration's regulatory shifts. The interest is largely coming from two verticals, Rustin said: fintech-forward banks that have long had an understanding of crypto assets, and large banks that have sizable securities custodial programs. '[The latter] are banks that did securities lending, that did margin lending, that did traditional custody services for stocks and bonds,' Rustin said. 'They're saying, 'Well, look, this is no different than custodying a stock or a bond. It's just how you actually control it and how you maintain it that's different.'' Recommended Reading Treasury calls for more fintech oversight Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
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BNY to custody Ripple USD
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. BNY will custody the reserves of Ripple's new stablecoin, Ripple USD, the firms said Tuesday. Through this partnership, the country's oldest bank and one of the nation's oldest cryptocurrency firms say they aim to bolster institutional adoption of digital assets and bridge the gap between the traditional finance and crypto realms. 'As primary custodian, we are thrilled to support the growth and adoption of RLUSD by facilitating the seamless movement of reserve assets and cash to support conversions and are proud to be working closely with Ripple to continue propelling the future of the financial system,' Emily Portney, BNY's global head of asset servicing, said in a prepared statement. Carolyn Weinberg, BNY's chief product and innovation officer, said the bank's custody and conversion capabilities 'aim to make stablecoins more interoperable with traditional assets, further driving their integration into the broader financial ecosystem.' With RLUSD, Ripple aims to fill a gap in the market as a stablecoin developed for enterprise-grade use cases, Jack McDonald, senior vice president of stablecoins at Ripple, said in a prepared statement. 'BNY brings together demonstrable custody expertise and a strong commitment to financial innovation in this rapidly changing landscape, as well as a forward-thinking approach to digital asset infrastructure, making it the ideal partner for Ripple and RLUSD,' McDonald said. As far as traditional banks go, BNY was an early dabbler in crypto – saying it would hold crypto for institutional clients in 2021, and rolling out the capability the following year. It's since been working to scale its digital asset custody business based on increased institutional adoption and interest, a spokesperson told Banking Dive. BNY serves as primary custodian for two other stablecoins as well: Circle's USDC, and Societe Generale's USD CoinVertible. The New York-based bank has custodied for Circle since 2022, and for SocGen since June. Stablecoins have recently gained much traction, thanks in part to the GENIUS Act, which passed in the Senate last month with the goal of bringing regulatory clarity to the novel asset. The stablecoin market ballooned from $5 billion globally in 2020 to $159 billion last year. the American Bar Association noted, and this year the market has further ballooned to more than $259 billion, according to CoinMarketCap. And Ripple, for its part, has also made strides this year in that the Securities and Exchange Commission dropped its long-held case against the firm, ending a four-year fight that began with what CEO Brad Garlinghouse called 'the first major shot fired in the war on crypto.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
Ripple Taps BNY to Custody Stablecoin Reserves as RLUSD Surpasses $500M
Ripple, the payments-focused digital asset firm, on Wednesday, named banking giant The Bank of New York Mellon as the primary custodian of reserve assets backing its U.S. dollar stablecoin Ripple USD (RLUSD). BNY, one of the oldest and largest custody banks in the world overseeing $53 trillion of assets, will safeguard the stablecoin's reserves and support the token's operations with transaction banking services, including conversions during minting and redemption, according to a press release shared with CoinDesk. RLUSD, launched in December and regulated by the New York Department of Financial Services (NYDFS), is backed by short-term U.S. Treasuries, money market funds and cash. "BNY brings together demonstrable custody expertise and a strong commitment to financial innovation in this rapidly changing landscape, as well as a forward-thinking approach to digital asset infrastructure," Jack McDonald, SVP of stablecoins at Ripple, said in a statement. The move comes as stablecoins are enjoying a breakthrough moment in the broader financial world, with the U.S. advancing to regulate the sector. Ripple recently applied for a national banking license with the U.S. Office of the Comptroller of the Currency. The company also filed for a Federal Reserve master account, which would allow it to custody RLUSD reserves directly with the central bank and further integrate with the U.S. financial system. RLUSD saw rising demand as well. The token's market capitalization has surpassed $500 million, growing over 30% through the past month, CoinGecko data in to access your portfolio
