Key Takeaways -
- Uphold holds $1.25 billion in XRP, nearly 10 times more than its Bitcoin holdings, indicating strong confidence in XRP's potential.
- The platform's user base grew from 5 million to 30 million, partly due to XRP accounting for 62% of Uphold's trading fees over two years.
- A new partnership between Ripple and Uphold aims to enhance cross-border payment services, with Uphold providing liquidity sourced from the open market.
In the dynamic world of cryptocurrencies, a recent development has piqued industry interest. Uphold, a newfound partner of Ripple is making waves for its hefty holdings in XRP. This article aims to unpack what this means for Ripple, Uphold, and the broader crypto market.
Crunching the Numbers: Uphold's XRP Holdings
John Deaton, a legal expert who is pro-XRP, recently shared some compelling statistics that have caught the attention of the crypto community. According to a detailed report, Uphold holds a staggering $1.25 billion in XRP for its customers. This is a significant amount, especially when compared to the platform's Bitcoin holdings, which are a mere $168 million. To put this into perspective, Uphold's XRP holdings are almost 10 times greater than its Bitcoin assets, signaling a strong belief in the potential of XRP.
The Why Factor: Uphold's XRP Strategy
You might be wondering why Uphold has such a large stash of XRP. One intriguing theory comes from YouTuber Matt. He suggests that Uphold gained a substantial amount of business from other platforms when they stopped supporting XRP. This strategic move by Uphold occurred after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in 2020, causing many platforms to delist the token.
The Growth Story: XRP's Role in Uphold's Success
John Deaton also emphasized that XRP has been a significant contributor to Uphold's remarkable growth. The token accounted for an impressive 62% of the company's trading fees for over two years. This is noteworthy because when Deaton first joined Uphold, the platform had a modest user base of just 5 million. Fast forward to today, and the platform boasts a thriving community of 30 million users, thanks in part to its XRP holdings.
Looking Ahead: The Future of XRP on Uphold
The volume of XRP on Uphold is expected to grow even more, thanks to a newly forged partnership between Ripple and Uphold. As part of this strategic collaboration, Uphold will offer its robust infrastructure to enhance Ripple's payment service, which is primarily focused on efficient cross-border transactions. To facilitate this, Uphold will provide the much-needed liquidity for these transactions. Interestingly, the company has clarified that it will source the XRP from the open market, ensuring that existing customer holdings remain untouched.
Uphold and XRP Through Thick and Thin
The XRP community has been overwhelmingly supportive of this partnership, and for good reason. Many have lauded Uphold for its steadfast commitment to XRP, even during turbulent times such as regulatory challenges. This unwavering support from both Uphold and the community underscores the strong belief in XRP's potential.