Brad Garlinghouse is in Singapore, for the Singapore Fintech festival. Yesterday, he held an interview with Bloomberg and shed light on ripple’s progress, such as where the technology is today in terms of adoption, and the challenges they have faced all through the year.
According to Brad, ripple has made tremendous progress in terms of adoption by the banking industry. He stated that ripple was signing around 2 production contracts a week, with banks and other financial institutions. Essentially this means that every week, at least two financial institutions are signing to ripplenet, to one of ripple’s products including XCurrent and XRapid.
While they have made tremendous progress, the ripple CEO made it clear that it has not been without challenges. He stated that 2018 has not been what they expected it to be, in terms of institutional interest in digital assets. He blamed this on a lack of regulatory clarity about this technology. For instance, he stated that in Singapore and other Asian countries where there is regulatory clarity, the adoption of digital assets was quite good. He specifically singled out the United States where lack of regulatory clarity had slowed down the large-scale adoption of ripple technologies and all other digital products by institutions. He also touched on the proper custody for digital assets, though this has improved significantly in the last few months.
Takeouts for XRP (XRP) investors
From this interview, it is clear that the demand for ripple products is on the rise, especially in Asian countries, where there is regulatory clarity around digital assets. Given that most of them are signing up to XCurrent, it then follows that in 2019 many of them could upgrade to XRapid. That’s because XRapid gives even more cost efficiency of up to 60% of costs. This is a huge incentive for banks looking for a competitive edge in the cross-border payments market. As this onboarding gains traction, so will the value of XRP (XRP) as an investment.
From this interview, investors can also deduce that once there is regulatory clarity, such as what Brad Garlinghouse calls a ‘global framework’, adoption rates will grow significantly. This could positively impact on the value of XRP in the long-run. Even in the U.S where regulations are moving slowly, there are indicators that things are moving in a positive direction. For instance, the approval of Bakkt is a step in the right direction. It means that the SEC is slowly taking cognizance of the permanence of digital assets both as investments, and as technologies that could transform society.
Custody services are coming up too, such as the Coinbase custodial service that caters to institutional players. As more of them come up, institutional money will start looking to crypto investments.
A confluence of these factors points to the possibility that XRP (XRP) is headed for some good times ahead. Today, XRP (XRP) is one of the few cryptos in the green even as the rest of the market drops. It’s an indicator that momentum is building up around XRP.