Ripple Labs, a prominent player in the cryptocurrency market, recently achieved a significant milestone by becoming a member of the International Swaps and Derivatives Association (ISDA).
The ISDA, known for its association with financial giants like JPMorgan, BlackRock, and Goldman Sachs, welcomed Ripple into its fold, establishing the company as one of the few cryptocurrency enterprises to gain entry into this elite group.
Ripple’s ISDA membership follows favourable legal rulings concerning the sale of its XRP tokens. The ruling, issued by Judge Analisa Torres in July, clarified that the sale of XRP to retail buyers does not qualify as securities, while sales to institutional holders amount to securities. This legal victory has bolstered Ripple’s operations, leading the company to resume activities with United States-based partners and clients.
Ripple’s entry into the ISDA paves the way for potential collaborations with other member institutions from 79 countries. With over 1000 members, the ISDA provides an influential platform for corporations, investment managers, insurance companies, and digital asset companies like Ripple to interact and explore opportunities in the global financial market.
The move signals a growing trend of acceptance and adoption of digital assets in traditional finance circles. Ripple has already established partnerships with various global financial institutions, businesses, and governments, and its association with the ISDA is expected to strengthen these connections further.
Amidst this development, market participants and observers have closely monitored the potential impact on XRP’s price. On Monday, August 7, a crypto pundit using the pseudonym “Mr Man” made a bold prediction, suggesting that XRP could surge to $1,896.23, fueled by its entry into the $1.2 quadrillion derivatives market through its ISDA membership.
Mr Man’s prediction was based on the expectation that XRP could process 10% of the derivatives market, estimated to be over $1 quadrillion in notional value. By calculating the required market cap increase (approximately 2,865 times) for such a scenario, he arrived at the estimated potential price for XRP. However, he was quick to caution his followers, asking them to take his assertions with a grain of salt.
Nevertheless, other pundits have also been making daring predictions for XRP. Brad Kimes, a popular crypto analyst and host of Digital PerspectivesPermaBull, recently stated, “I believe XRP will go to four in five digits based on its intended use case and let’s be clear utility and use case is not driving the price of XRP at this point so we are a little early” on his youtube channel, praising the recent Ripple’s entry to ISDA.
At press time, XRP was trading at $0.66, up 5.71% in the past 24 hours.