The day opened with two news for Ripple blockchain firm through its stream of partners. One got acquired by a consortium of investors while the other, a bank in India, nears bankrupt, reports confirm.
On March 3, TerraPay, San Francisco-based global investment firm that makes sending and receiving funds easy for those in emerging countries, announced that the company has been acquired by a consortium of investors at an undisclosed amount.
TerraPay also disclosed that it raised a sum of $9.6 million from the same investors and IFC, dedicated towards the growth of the company.
Established in 2015, TerraPay helps payment service providers connect to each other easily at low cost. The payment company has over 25 licenses that gives it the power to operate in more than 60 countries of the world.
Ripple Partner in India Nears Bankruptcy
In another report, Ripple partner in India, heavyweight Yes Bank, looks to be in trouble despite the fact that the Reserve Bank of India intervened to rescue the fourth-largest private bank.
On Thursday, RBI imposed a Rs 50,000 withdrawal restriction on customers of YES Bank till April 3, 2020.
The restriction allows customers to withdrawal not more than Rs 50,000 from accounts, be it saving, currency or other types of accounts within the said period. This was done to help salvage the bank from the crisis it is undergoing at the moment.
While the rule also applies to those who have multiple account, the RBI designed a relief plan for emergency reasons. The governor of the reserve bank, Shaktikanta Das, also reassured customers of a swift resolution to the matter.
“30 days which we have given is the outer limit. You will see a very swift action from RBI,” told reporters after ASSOCHAM’s 15th annual banking summit. The decision is taken at a larger level, not at individual entity level, the move is aimed at ensuring safety of financial system,” Das said.
Nevertheless, YES Bank stock plummeted as the trade market opened today. The value of the stock, on Friday, March 6, had dropped by 83 percent.
While a $9.6 million towards the growth of TerraPay would bode well for the company and may be Ripple, the dire situation of Yes Bank negatively may impact Ripple’s remittance volume in India, especially because Yes is the fourth-largest bank in the country.