Ripple reported a significant increase in institutional interest in its digital asset during the third quarter of 2024, even as its legal battle with the Securities and Exchange Commission continues.
In its quarterly XRP Markets Report released today, Ripple emphasized the court’s July ruling, affirming that XRP is not inherently a security. This decision, the company said, has spurred a wave of institutional interest, with several major players filing for XRP-related exchange-traded funds (ETFs). Bitwise, Canary, and 21Shares have all filed applications for XRP ETFs, while Grayscale Investments launched an XRP Trust and is seeking to convert its Digital Large Cap Fund, which includes XRP, into an ETF.
Source: Ripple
“These filings mark a pivotal moment, underscoring institutional interest and demand for new products as XRP remains one of the top ten assets by market cap,” Brad Garlinghouse, CEO of Ripple, stated. Ripple has expressed interest in investing in these and other exchange-traded products, further solidifying its commitment to the growth of the XRP ecosystem.
The positive momentum comes despite the SEC’s ongoing appeal of the court’s ruling. Ripple stressed that the appeal does not challenge the fundamental finding that XRP itself is not a security but rather focuses on other aspects of the case related to historical distributions of the token. The legal proceedings are expected to continue into 2025.
Meanwhile, XRP trading volume remained robust throughout the third quarter, averaging $600-700 million daily on major exchanges. However, the cryptocurrency experienced significant price volatility, peaking in mid-August before settling into a more stable range.
Source: Ripple
Expanding the Functionality of the XRP Ledger
Ripple also announced progress on expanding the functionality of the XRP Ledger, its underlying blockchain technology. The company is working on introducing smart contract capabilities, a key feature that would allow developers to build more complex decentralized applications on the network. This development is expected to further enhance the utility and adoption of XRP.
Beyond XRP, Ripple also highlighted the launch of its own stablecoin, Ripple USD (RLUSD), partnering with several exchanges to ensure global availability. The stablecoin, regulated under a New York Trust Company Charter, aims to provide a reliable digital asset for institutional and individual users worldwide.
While the regulatory landscape in the United States remains uncertain, Ripple noted positive developments in other jurisdictions, including Japan, South Korea, and the UAE, where regulators are adopting more crypto-friendly policies. The company recently received in-principle approval from the Dubai Financial Services Authority to expand its payment solutions, signaling a growing acceptance of its technology globally.
