Blockchain firm Ripple has announced the acquisition of Money Transmitter Licenses (MTLs) in New York and Texas as the company seeks to expand its domestic footprint in the United States.
Ripple noted that the new licenses align with a period of growing demand in both states for compliant, real-time global payment solutions, the company said in a statement on January 27.
“We’re 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. <…> Ripple is well-positioned to support companies who are ready to take advantage of the current landscape,” said Joanie Xie, Managing Director of North America at Ripple.
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New York and Texas approvals raise Ripple’s total U.S. MTLs to over 50 and its global regulatory approvals to more than 60.
These include New York BitLicense, a New York Limited Purpose Trust Company Charter, and a Major Payment Institution License from Singapore’s Monetary Authority.
Shifting regulatory landscape
The licenses come at a time when the cryptocurrency community in the United States is optimistic about the industry’s state, given the friendly Donald Trump administration.
To this end, the company acknowledged that cryptocurrency regulations in the U.S. are witnessing a significant shift, citing the recent move by the Securities and Exchange Commission (SEC) to rescind a provision that would have imposed strict requirements on banks offering crypto custody.
Ripple stated that with the new administration, policymakers and regulators seemingly acknowledge the significance of digital asset innovation.
These developments have emerged as the SEC, expected to have a pro-cryptocurrency head potentially, has formed a new digital asset task force to facilitate practical regulatory frameworks.
Although Ripple has witnessed increased use cases of its underlying cross-border payment technology, the company remains in a precarious situation regarding its ongoing case with the SEC.
To recap, the SEC sued Ripple for allegedly raising $1.3 billion through the sale of XRP, claiming it was an unregistered security.
However, in 2023, Judge Analisa Torres ruled that some XRP sales did not violate securities laws due to a blind bid process but found that direct sales to institutional investors were securities contracts and fined Ripple $125 million.
In October 2024, the SEC appealed, arguing that the decision conflicted with Supreme Court precedent. There is hope for a possible resolution under the appointment of SEC Chair Paul Atkins.
XRP price analysis
Meanwhile, the shifting regulatory outlook has helped XRP exit a multi-year consolidation phase below the $1 mark. By press time, XRP was trading at $2.92, down 4.6% in the last 24 hours, as $3 remains the crucial short-term resistance.
With XRP currently trading in tandem with the general cryptocurrency market, Ripple’s acquisition of additional MTLs could trigger XRP price growth.
Featured image via Shutterstock
