Ripple, the company behind XRP – one of the largest cryptocurrencies in the world, is very active in M&A activities. According to Chief Technology Officer David Schwartz, the company is in the process of negotiating 'multiple potential acquisition deals at various stages'.
M&A strategy and recent deals
Schwartz emphasizes that this is a 'unique opportunity' for cryptocurrency companies to acquire businesses that create strategic value, especially when traditional financial giants have not yet truly competed in this field. Earlier in April, Ripple drew attention when it acquired the major brokerage firm Hidden Road for $1.25 billion. Additionally, #Ripple also acquired the cryptocurrency custody companies Metaco for $250 million and Standard Custody (the amount was not disclosed).
M&A deals in the cryptocurrency sector have soared this year, primarily limited to cryptocurrency companies or fintech firms looking to expand crypto services.
Upgrade of the XRP Ledger blockchain
Ripple is working to develop the XRP Ledger, the blockchain that powers XRP. Although #XRPledger is currently under tight regulation with few applications to ensure user fund safety, Schwartz's team is working to enhance its flexibility or 'programmability'.
Schwartz stated that the goal is to achieve some benefits from programmability without encountering the drawbacks. For example, the XRP Ledger may soon integrate smart contracts that manage payments, automatically converting cryptocurrency into the preferred digital asset of the recipient. Ripple is also building a lending protocol for the XRP Ledger, expected to launch in Q3 of this year, depending on the approval of validators. This protocol will feature a split between traditional finance (TradFi) at the user interface and decentralized finance (DeFi) at the backend.
In June, Ripple announced a series of important updates, including the launch of a tokenized treasury, an organization-friendly decentralized exchange, and a partnership with Wormhole – a cryptocurrency bridge that allows asset conversion between incompatible blockchains.