• 28 May, 2024
News

Deaton Affirms Ripple’s Fidelity to XRP, Coinciding with Milestone DFSA Approval

Attorney John Deaton, representing over 75,000 XRP holders in the legal dispute between Ripple and the SEC, has recently made a definitive statement regarding Ripple’s commitment to XRP. In a tweet, Deaton addressed concerns within the XRP community about Ripple’s dedication to the cryptocurrency, especially in light of the company excluding XRP from several recent innovations. Deaton has been a vocal proponent of Ripple’s obligation to XRP, asserting that the company has a fiduciary duty to continue its support; he wrote:

Deaton’s comments came amidst Ripple’s announcement of a significant regulatory achievement: the approval of XRP under the Dubai Financial Services Authority (DFSA) virtual assets regime. This approval permits licensed firms within the Dubai International Financial Centre (DIFC) to integrate XRP into their virtual asset services, marking a pivotal moment for Ripple in the Middle East.

In his tweet, Deaton provided a mathematical rationale for Ripple’s unwavering support for XRP, referencing the company’s valuations from Series A in 2015 to the Series C buyback in 2022, which saw a valuation increase to $15 billion. He highlighted that Ripple’s decision to invest $300 million in itself, even amidst a severe crypto bear market and before the Torres Ruling, was a testament to its confidence in XRP’s integral role in its business model.

Deaton further emphasized the significance of Ripple’s XRP holdings, suggesting that if XRP’s value were to exceed $2, Ripple’s assets could be valued at over $100 billion. This potential valuation underpins Ripple’s strategic interest in maintaining and enhancing XRP’s utility and market presence.

Ripple CEO Brad Garlinghouse has echoed the sentiment of commitment to XRP, particularly in light of the DFSA’s approval, which positions XRP alongside other major digital assets like BTC, ETH, and LTC. Garlinghouse praised Dubai for its leadership in virtual asset regulation and innovation, noting the city’s efforts to attract foreign investment and accelerate economic growth.

The DFSA’s approval of XRP is a significant stride for Ripple, potentially unlocking new payment corridors and virtual asset applications on the XRP Ledger. Ripple’s selection of the DIFC for its MENA headquarters in 2020 was a strategic move, given that approximately 20% of its customers are based in the region. The upcoming Ripple Swell event in Dubai is set to further highlight Ripple’s initiatives and the growing acceptance of XRP within the global financial ecosystem.

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