A Ripple Labs Inc spokeswoman has told Reuters that the company is considering buying the assets of bankrupt cryptocurrency lender Celsius Network. Celsius submitted their petition for protection under the bankruptcy law in July, and in June, it suspended all customer withdrawals. However, the spokesman did not provide any information regarding whether or not Ripple is wants to purchase Celsius Network entirely.
The statement by the spokesperson was in response to a request made to Ripple to comment on the court papers. Ripple has filed documents concerning the Celsius bankruptcy court proceedings, and the company is looking to be represented. Earlier in the week, the court gave its approval for the filing.
Approximately 300,000 people use Celsius Network, which, as of June 13th, manages over $11 billion in assets. Taking into consideration that Ripple Labs is currently in a protracted legal battle against the Securities and Exchange Commission (SEC), the possible acquisition might be a watershed moment for both of the firms. The company’s legal issues stem from allegations of unregistered sales of the XRP Ledger’s native cryptocurrency.
Ripple continues to witness significant growth and has been able to form partnerships to increase the adoption of the XRPL. This is despite the fact that the company is engaged in a legal dispute with the U.S. securities regulator. According to the statement by the payment firm’s spokesperson, they are “actively searching for Mergers and Acquisitions (M&A) opportunities to strategically scale the company.”
Many mainstream banks, especially in Asia have been using the Ripple network. Notably, some investors see it as a formidable challenger to the SWIFT system. Also, it is probable that many financial institutions have held back against using Ripple because of its ongoing legal battle. Therefore, Ripple Labs and XRP could see exponential growth if it emerges victorious.
This post was last modified on Aug 11, 2022, 10:51 BST 10:51