Ripple Labs Receives the NY BitLicense

  • The New York State Department of Financial Services (NYDFS) has approved Ripple Labs’ BitLicense application. Granted today, the approval will grant Ripple the license to sell and obtain XRP – the native digital asset of the Ripple Consensus Ledger, a platform used by financial institutions including banks as well as companies.

    Ripple’s operations consist of financial services and it’s native currency XRP which is focused on working with legacy financial institutions, banks, and settlement clearinghouses. Just recently Ripple announced a pilot program with the Expertus Payment Platform.

    The program is to enable financial institutions the testing grounds for using blockchain technology and eventually apply it to the bank’s or financial management service’s current architecture. Steve Mollenkamp, Head of Channel Sales at Ripple said, “Joining forces with partners like Expertus allows us to make it even easier for banks and their customers to realize the benefits of distributed financial technology. The newly launched pilot program will contribute to the growth of the Ripple network, enabling even more financial institutions to improve their cross-border payments.”

    Designed to improve currency liquidity while lowering the significant capital costs of cross-border payments, XRP enables banks to use one XRP account held in their control. The measure circumvents the need to withhold local currencies in nostro accounts in different countries around the world. It is estimated that banks using XRP and Ripple can save up to 42 percent on costs as things stand.