Ripple’s XRP Surges on Stablecoin Partnership and Fed Hints
XRP experienced an 8% surge on Friday following Ripple’s announcement of a partnership with Japanese financial giant SBI Holdings. The collaboration aims to introduce Ripple USD (RLUSD), a stablecoin, to the Japanese market. This positive momentum was further fueled by hints from Federal Reserve Chairman Jerome Powell regarding potential policy easing.
Ripple and SBI Holdings Team Up for RLUSD Expansion in Japan
Ripple, a prominent player in the payments technology sector, has signed a Memorandum of Understanding (MoU) with SBI Holdings to launch RLUSD in Japan. The anticipated launch is scheduled for the first quarter of 2026 and will be facilitated through SBI VC, SBI Holdings’ cryptocurrency-focused subsidiary.
“Our partnership with SBI has always been about more than just technology; it’s about building a trusted and compliant financial future,” stated Jack McDonald, Senior Vice President of Stablecoins at Ripple.
SBI boasts being the first company in Japan to secure a license as a Provider of Electronic Payment Instrument Exchange Services and has already initiated stablecoin services.
Tomohiko Kondo, CEO of SBI VC Trade, emphasized the significance of this move: “The introduction of RLUSD will not only broaden the stablecoin options in the Japanese market but is a major step forward in the reliability and convenience of stablecoins in Japan.”
RLUSD is a stablecoin pegged to the US dollar and operates on both the XRP Ledger (XRPL) and the Ethereum blockchain.
Fed’s Comments Spark Crypto Market Rally
The broader cryptocurrency market, including XRP, saw gains after Fed Chairman Powell’s speech at Jackson Hole hinted at a possible rate cut at the agency’s upcoming September meeting. Powell indicated that weakness in the labor market could prompt the Fed to consider a shift in its policy stance.
XRP Technical Analysis: Eyes on $3.39 Target
XRP is currently testing the lower boundary of a symmetrical triangle pattern, having broken above the 50-day Simple Moving Average (SMA) and the 14-day Exponential Moving Average (EMA).
A decisive move above the upper limit of the triangle could propel XRP towards the $3.39 resistance level. The remittance-focused token could potentially test its all-time high resistance if it maintains a strong close above $3.39.
The Relative Strength Index (RSI) is nearing a cross above its neutral level and moving average line, suggesting a potential shift towards bullish momentum.
However, a firm close below $2.78 would invalidate the bullish outlook and could send XRP down to the $2.60 support level, which is reinforced by the 100-day SMA.
Ripple – Frequently Asked Questions
Is XRP a security?
The answer depends on the transaction, according to a court ruling issued on July 14:
- For institutional investors or over-the-counter sales, XRP is considered a security.
- For retail investors who purchased the token through programmatic sales on exchanges, on-demand liquidity services, and other platforms, XRP is not a security.
What is the SEC’s lawsuit against Ripple about?
The US Securities and Exchange Commission (SEC) accused Ripple and its executives of raising over $1.3 billion through an unregistered asset offering of the XRP token.
While the judge ruled that programmatic sales are not considered securities, sales of XRP tokens to institutional investors are investment contracts. In the latter case, Ripple did violate US securities law and will have to continue litigating for the approximately $729 million it received under written contracts.
What are the implications of the court ruling?
The ruling offers a partial victory for both Ripple and the SEC, depending on the perspective.
Ripple achieved a significant win regarding the fact that programmatic sales are not considered securities, which could be a positive sign for the cryptocurrency sector in general, as most assets targeted by the SEC are managed by decentralized entities that sold their tokens primarily to retail investors through exchange platforms, experts say.
However, the ruling does not significantly help answer the key question of what makes a digital asset a security, so it is still unclear whether this lawsuit will set a precedent for other open cases affecting dozens of digital assets. Issues such as the appropriate degree of decentralization to avoid the “security” label or where to draw the dividing line between institutional and programmatic sales are likely to persist.
How does this ruling affect the SEC’s approach to cryptocurrency regulation?
The SEC has intensified its enforcement actions towards the blockchain and digital asset industry, filing charges against platforms such as Coinbase or Binance for alleged violations of US Securities Law. The SEC claims that most crypto assets are Securities and are therefore subject to strict regulation.
While the defendants can use parts of the Ripple ruling in their favor, the SEC can also find reasons in it to maintain its current strategy of regulation through enforcement.
What is the current status of the Ripple case?
The court ruling is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before. The case is in a pre-trial phase, in which both Ripple and the SEC still have the possibility of reaching an agreement.
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