Key takeaways:
- In a Bloomberg interview, Ripple CEO Brad Garlinghouse stated that the business would “welcome” an ETF built around the XRP token.
- The CEO declined to respond when asked if Ripple is currently communicating with the issuers of ETFs.
In a Bloomberg interview, Ripple CEO Brad Garlinghouse stated that the business would “welcome” an Exchange Traded Fund (ETF) that was built around the XRP token.
Garlinghouse disclosed the company’s position regarding a possible XRP ETF on February 20. They “would certainly welcome it,” the CEO emphasized. The CEO added that the emergence of many ETFs centered around various tokens is inevitable.
Additionally, according to Garlinghouse, ETFs centered around baskets will enter the market. The CEO feels that this will help investors “diversify the risks.”
Having additional ETFs, according to the CEO, “only makes sense.” He went so far as to draw parallels between the present state of the spot Bitcoin ETFs and the early years of the stock market. Garlinghouse thinks that investors would like to diversify their holdings rather than be exposed to just one stock.
The CEO declined to respond when asked if Ripple is currently communicating with the issuers of ETFs. Garlinghouse, though, restated the company’s stance:
“We think it makes sense for the XRP community overall.”
Additionally, the Ripple CEO discussed the “long-term view.” Digital assets, in Garlinghouse’s opinion, are all about producing usefulness and resolving practical issues. He clarified that Bitcoin’s performance as a store of value has been strong. However, Garlinghouse contended that XRP is “perfect for payments.”
Garlinghouse offered commentary on Ripple’s recent acquisition of Standard Custody & Trust in addition to discussing the possibility of an XRP ETF.
The company bought the US-based supplier of digital asset custody on February 13. The business operates under a charter issued by the New York State Department of Financial Services and is a recognized custodian under federal law. It also provides custody and escrow services.
According to Garlinghouse, custody is one of the fundamental pillars of cryptocurrency that will ensure its success. He clarified that organizations must have the capacity to safeguard both their own digital assets and those of their clients.
Standard Custody & Trust’s license, according to the CEO of Ripple, is crucial to their mission of promoting a “compliance first” mentality.
