- Ripple recently announced its acquisition of GTreasury for $1 billion, but the crypto community questions the event’s direct impact on XRP.
Ripple, one of the world’s largest digital asset infrastructure providers, announced its acquisition of GTreasury, a treasury management software provider, on Thursday. The deal came under a tune of $1 billion.
Ripple’s Big Break Into the Treasury Payments Market
According to Ripple CEO Brad Garlinghouse, the move signals the company’s break into the $120 trillion corporate treasury payments market. He explained that it would accelerate the movement, management, and optimization of liquidity in real-time for customers.
The acquisition aims to provide a two-fold solution for institutions:
- Unlocking idle capital to earn more on short-term assets by tapping into the multi-trillion dollar repo market via prime broker Hidden Road.
- Moving money instantly in real-time and 24/7 across borders at competitive rates, leveraging Ripple’s XRP Ledger (XRPL)-powered technology.
Garlinghouse highlighted that the acquisition expands the reach of both companies to help chief financial officers (CFOs) better manage all their assets. These include digital assets like stablecoins and tokenized deposits.
Meanwhile, GTreasury CEO Ver Eecke echoed the same sentiment, emphasizing that the acquisition paves the way for combining their company’s cash forecasting, risk management, and compliance systems with Ripple’s speed, global reach, and blockchain-based solutions. He added that these create an opportunity for treasurers to manage payments, liquidity, and risk in the new digital economy.
The GTreasury buyout follows Ripple’s sizable acquisitions involving Hidden Road for $1.25 billion and Rail for $200 million this year.
Potential Impact of Ripple’s GTreasury Acquisition on XRP
Ripple’s press release about its acquisition of GTreasury didn’t explicitly mention XRPL or XRP. However, it indicated that GTreasury will leverage its revamped solutions with the blockchain giant’s underlying technology, which is XRPL powered by its native token, XRP.
Some skeptics commented that the acquisition’s emphasis on stablecoins will only benefit the Ripple USD (RLUSD), as Ripple will likely prioritize its own ecosystem growth over XRP price gains. It should be noted that RLUSD is not exclusive to XRPL because it also runs on the Ethereum (ETH) chain. Hence, many believe that a sole focus on the stablecoin will likely have minimal influence on XRP’s dynamics. Unless it’s accompanied by a narrative that could potentially hype XRP, resulting in an ensuing boost in adoption.
However, a deeper analysis suggests the rise of Ripple’s stablecoin is not necessarily a zero-sum game for XRP since the version of the stablecoin running under XRPL uses XRP under its burn mechanism, reinforcing the latter’s deflationary mechanics. With this in mind, RLUSD’s broader adoption across GTreasury’s clients could act as an accelerant for XRP’s native utility.
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