Ripple Joins ISDA, Expanding into $1.2 Quadrillion Derivatives Market Alongside J.P. Morgan, Goldman Sachs, and BNY Mellon
Ripple Labs is now a member of the International Swaps and Derivatives Association (ISDA).
The move has been tipped to catalyze the growth of XRP tokens.
Blockchain payments and fintech firm Ripple Labs Inc has finally become a member of the $1.2 quadrillion derivatives market’s International Swaps and Derivatives Association (ISDA), joining the likes of J.P. Morgan, Goldman Sachs, CME Group, Citi, BNY Mellon, and the London Stock Exchange.
This milestone signifies a strategic move for the San Francisco-based blockchain company into the integration of derivatives and smart contract solutions in Traditional Finance (TradFi).
BOOOOOOOOOOOOOOOOOOOM!!!!@Ripple has joined ISDA. It’s the DERIVATIVES market (1.2 Quadrillion) #XRP
• BlockRock
• Société Générale et al
• directors J.P. Morgan
• CME Group
• Citi
• Goldman Sachs
• BNY Mellon
• London Stock Exchange
• BofA
1000+ Institutions are… pic.twitter.com/6yzSxfzhe4
— JackTheRippler ©️ (@RippleXrpie) August 5, 2023
For context, derivatives are some of the most popular financial instruments in the world. They are contracts that derive their value from other underlying assets or indexes such as stocks, gold, real estate, stablecoins, cryptocurrencies, and much more. Owing to this design of derivatives, traders buy and sell them to speculate on the price, hedge their risk exposure, or use leverage. They are mostly in the form of futures, options, forward, or swaps.
According to its website, the ISDA is a renowned association with over 1,000 institutional members including corporations, investment managers, government and supranational entities, insurance companies, energy and commodities firms, and international and regional banks from 79 countries. The Association, headquartered in New York, has been a pioneer in the global derivatives market, setting standards and promoting sound risk management.
Explicitly, the ISDA has focused on three core areas which are reducing counter-party credit risk, increasing transparency, and improving the industry’s operational infrastructure. Ripple’s membership in this exclusive club is regarded as a milestone especially, as it now aligns with some of the most powerful financial market key players.
It is believed that this strategic partnership will be the birth of more opportunities for the XRP community.
Judge’s Recent Ruling Triggers XRP Price
Besides the new integration into the ISDA, the recent ruling of Judge Analisa Torres that XRP is not a security has triggered a lot of activities in the XRP ecosystem.
In less than 24 hours after the verdict, the token shot up by almost 70 percent and according to crypto analyst Michaël van de Poppe, XRP wiped out 15 months’ losses within this time trading at $0.704322.
In the meantime, the news of Ripple’s membership with ISDA is yet to impact the price of the XRP token. At the time of this writing, XRP was trading at $0.6184, after losing 2.22 percent of its value in the last 24 hours. Still, netizens are confident that the alliance will ultimately lead to exponential growth for Ripple. Also, financial analysts are highly interested in the development. They believe that it may have broader implications for the crypto market like the integration of crypto into TradFi.
Other market analysts remain bullish on XRP and have predicted massive price gains for the token in the near future. CoinKid suggested that XRP may be headed back above the $3 price level with a surge of up to 430.6 percent within the next six months. Similarly, Shannon Thorp, a Business Support Manager at Wells Fargo recently predicted a bogus price surge for XRP. Thorp believes that the coin can reach a price range of between $100 and $500.
Filed under: Bitcoin - @ August 7, 2023 3:15 pm