This week’s edition of Tales from the Crypto features an update on Ripple’s newly launched stablecoin RLUSD, El Salvador’s negotiated commitment to Bitcoin, as well as an acquisition and a new partnership.
Ripple’s RLUSD challenges PayPal’s PYUSD, Circle’s EURC
With a self-reported market cap of more than $53 million, Ripple’s stablecoin RLUSD recently surged past rival coins from PayPal (PYUSD) and Circle (EURC) in 24-hour trading volume. The volume, which topped $607 million, is all the more impressive given RLUSD’s relatively smaller market capitalization. PYUSD has a market cap of more than $491 million. EURC has a market cap of more than $82 million.
“As the U.S. moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD, which offer real utility and are backed by years of trust and expertise in the industry,” Ripple CEO Brad Garlinghouse said in December when RLUSD was launched.
RLUSD is an enterprise-grade, USD-denominated stablecoin. Each RLUSD token is fully backed by U.S. dollar deposits, U.S. government bonds, and cash equivalents to ensure stability, reliability, and liquidity. Ripple will use RLUSD to facilitate global payments for its enterprise customers via its Ripple Payments division. There has been some curiosity over Ripple’s decision to limit RLUSD circulation. At least one analyst has suggested the move may be an effort to keep the price of RLUSD relatively stable — and less vulnerable to a rapid decline in value.
Ripple’s RLUSD news comes as the company is announcing that it has adopted the Chainlink standard for verifiable data on the Ethereum blockchain. The move will boost the utility of RLUSD throughout the “on-chain economy,” the company noted in a statement this week. Also recently, Ripple reported that its CEO along with Ripple Chief Legal Officer Stuart Alderoty, met with President-elect Donald Trump.
“Great dinner last night with Donald Trump & Stuart Alderoty,” Garlinghouse wrote on X, “Strong start to 2025!”
El Salvador forges ahead in its Bitcoin acquisition
How has recent strength and interest in Bitcoin impacted El Salvador, which embraced the cryptocurrency like no other country when it elected to allow Bitcoin to be used as legal tender in 2021?
On the one hand, the value of Bitcoin has soared in recent years. In June 2021, when El Salvador enacted the new policy, BTC was roughly $35,000. Today, the cryptocurrency is valued at more than $94,000, after topping the $100,000 mark in mid-December.
On the other hand, the windfall has reached relatively few individual Salvadoreans. While the government tried to incentivize Bitcoin ownership with $30 in BTC for those who signed up for digital wallets, it turns out that many who received the $30 in Bitcoin quickly cashed out their holdings. Additionally, as the country’s former Central Bank president Carlos Acevedo noted, any BTC gains remain unrealized until sold.
Further, El Salvador is in some ways still wrestling with the International Monetary Fund over the Fund’s preference that the country reduce, or at least limit, its exposure to cryptocurrencies in exchange for financial support. A recent financing deal valued at $1.4 billion (£1.1 billion) was secured between the two parties, but the extent to which El Salvador will curtail its Bitcoin policies remains a bit unclear. While the deal specifies that tax payments will be made in the U.S. dollar, for example, which is El Salvador’s other official currency, the government has insisted that it will continue to buy BTC.
Backpack acquires FTX EU to expand in the European crypto market
International cryptocurrency exchange Backpack has acquired FTX EU, the former European arm of FTX. The transaction was approved by the FTX bankruptcy court as well as the Cyprus Securities and Exchange Commission (CySEC) and will enable Backpack’s EU division to offer a full suite of crypto derivatives throughout the EU.
The fact that FTX EU was a MiFID II-licensed institution played a significant role in Backpack’s acquisition decision. “As many international exchanges exit the European Union, becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards and is a significant step to bringing transparent, secure, and regulated crypto trading to an underserved European market,” Backpack Exchange Founder and CEO Armani Ferrante said.
Founded in 2022 and headquartered in Singapore, Backpack Exchange serves cryptocurrency customers in more than 150 countries and regions. With more than $60 billion in trading volume, Backpack Exchange offers a range of products and services including its noncustodial Backpack Wallet, Backpack Exchange, and Solana-based NFT community Mad Lads.
As part of the acquisition, Backpack EU will be responsible for distributing previously court-approved FTX bankruptcy claims to FTX EU customers. Ferrante underscored this in a statement, adding that “customer restitution is a crucial step to rebuild trust and confidence in the industry, and Backpack is committed to returning FTX EU customers’ funds as fast and as safely as possible.”
Trillium Surveyor partners with Kaiko
Trade surveillance and best execution software provider Trillium Surveyor has forged a strategic partnership with cryptocurrency market data provider Kaiko. The goal of the partnership will be to deliver “best-in-class solutions” to financial institutions and exchanges involved in cryptocurrency trading. The two companies will provide an integrated solution that blends Trillium’s trade surveillance technology with Kaiko’s crypto market data in order to help financial institutions quickly, accurately, and efficiently identify and stop inappropriate trading activity.
“A robust, easily configurable trade surveillance tool is essential to support institutions as they navigate the rapidly changing crypto regulatory environment,” Kaiko CEO Ambre Soubiran said. “This partnership with Trillium Surveyor underscores our commitment to providing the critical data needed for transparency and trust in the crypto ecosystem.”
Founded in 2014 and maintaining offices in New York, London, Singapore, and Paris, Kaiko is a leading provider of cryptocurrency market data, analytics, and indices, ensuring businesses have access to institutional-grade, regulatory-compliant solutions. With global connectivity to real-time and historical data feeds across the top exchanges in the world, Kaiko recently announced an enhancement to its market data platform courtesy of an integration with leading European cryptocurrency exchange Bitvavo.
Trillium Surveyor helps capital markets firms save time and money — and remain compliant — with a trade surveillance platform that balances power with ease of use. The company’s technology enables companies to monitor their trading health, learn about key new events, access and analyze relevant data surrounding these events, and then act on that data with built-in workflow tools. Featuring actionable insights across equities, derivatives, fixed income, and cryptocurrency markets, Trillium Surveyor helps its customers build compliance programs that are both efficient and cost-effective. Headquartered in New York, Trillium Surveyor was launched in 2014.
Photo by beytlik
Views: 60
