Blockchain payments company Ripple Labs stated that it had secured money transmitter licenses in New York and Texas, US states.
Last Monday, January 27, Ripple announced in a notice that the financial regulators of the mentioned regions approved money transmitter licenses for the payment company. Currently, this firm holds more than 50 licenses in different jurisdictions. The blockchain company said that licensing will allow it to offer a cross-border payment solution to financial service consumers in the United States.
Ripple noted that Texas and New York have defined regulations and strict licensing requirements. Robust compliance standards and regulatory oversight were also mentioned separately.
Regulators in New York and Texas may have a more significant impact on crypto companies should adoption increase. It’s worth noting that many mining firms are based in Texas. A significant number of companies specializing in digital assets operate in New York.
The license approvals followed Ripple chief executive officer Brad Garlinghouse’s announcement last month that the New York Department of Financial Services approved stablecoin RLUSD, which the firm intends to list on cryptocurrency exchanges.
Joanie Xie, managing director of North America at Ripple stated that the company is continuing to see more interest from financial institutions to crypto businesses that want to unlock the benefits of crypto and blockchain for faster, cost-efficient, and 24/7 cross-border payments. It was also noted that with years of experience working in both crypto and with financial institutions, the firm is well-positioned to support brands that are ready to take advantage of the current landscape. Ripple Payments has served $70 billion in payment volume. The firm is continuing to expand its US footprint by investing in domestic talent. Last year Ripple opened new offices in San Francisco and New York.
It is worth noting that the mentioned company continues to face legal troubles. The United States Securities and Exchange Commission (SEC) case was filed against Ripple due to XRP in 2020. In August last year, a judge found the company liable for $125 million. At the same time, the SEC and Ripple’s legal team filed appeals, which are currently being considered by the judges of the Second Circuit.
Brad Garlinghouse and the mentioned company’s chief legal officer Stuart Alderoty, according to media reports, probably have a close relationship with the President of the United States Donald Trump. The firm has donated $5 million worth of XRP to Mr. Trump’s presidential inaugural fund. Stuart Alderoty has spent over $300,000 on fundraising and political action committees supporting the then-Republican candidate.
Both executives met with Donald Trump at his Mar-a-Lago home this month. They also attended Mr. Trump’s inauguration events. During communication with media representatives, executives reported they were marked as official guests at the mentioned events.
Also in the current month, Brad Garlinghouse claimed that 75% of Ripple’s job openings were based in the United States as a direct result of Donald Trump’s election.
As we have reported earlier, Ripple Launches New Stablecoin.
