While Bitcoin and Ethereum register meager gains, XRP has gained 8% within a few hours after Ripple announced its plans to expand into Iceland. Ripple Labs, the San Francisco-based startup behind the XRP token has acquired crypto trading firm based in Iceland, Algrim, in a bid to expand its presence in Europe. This announcement comes after the company acquired another engineering team just last week.
According to a blog post published on September 30, Ripple has onboarded the six-person engineering team to boost ongoing development of Ripple’s On-Demand Liquidity (ODL) product which utilizes XRP digital asset to enable cross-border payments. The price of the acquisition deal has not been revealed at the moment.
Ripple Bags Another Huge Deal
Clearly, Ripple is on an acquisition spree. Earlier this year, the cryptocurrency and blockchain firm rocked the world with its MoneyGram partnership announcement where the company agreed to invest $50 million in the money transfer behemoth.
On Friday last week, Ripple announced the acquisition of Logos Network by its investment arm, Xpring. Through this deal, eight engineers were added to Xpring to focus on the development of XRP-based development finance (DeFi) products.
With its latest acquisition, Ripple hopes to expand its operations in Northern Europe as the company already has a foothold in San Francisco, New York, London, Mumbai, Singapore, Sydney, and São Paulo. This new purchase marks the firm’s first move into Iceland.
In addition, the company has opened an office in Iceland. According to the blog post, “Iceland will serve as one of Ripple’s engineering hubs with plans to bring on more technical talent in the region”.
Senior Vice President of engineering at Ripple, Christopher Kanaan noted:
“With built-in expertise in trading and exchanges, the addition of Algrim’s engineering talent to our team will be instrumental in continuing the momentum we’re already experiencing with On-Demand Liquidity.”
Started in 2010, Algrim fell victim to Iceland’s Big Bitcoin heist where thieves got away with cryptocurrency mining rigs worth over $2 million. Afterward, the company built a crypto trading platform, working with over 30 markets and was working on it for the last two years before the Ripple acquisition. The Algrim team also has expertise in developing regular trading platforms and algorithms for foreign exchange trading.
Speaking about the acquisition, Algrim CEO stated:
“The decision to join the Ripple team was a natural fit- both companies share a vision to enable widespread adoption of digital assets and blockchain technology, which aligns directly with what we’ve been working towards for the past several years. We are big believers in XRP and the XRP Ledger, and eager to help build the future of payments at Ripple.”
Ripple’s Partnership With Algrim And What It Means For XRP
On-demand liquidity via Ripple’s RippleNet utilizes XRP cryptocurrency to facilitate cross-border payments. In this way, financial institutions are able to transfer local currency to XRP and from XRP to the local currency of the destination, without having to physically hold XRP. Ripple opined that it has over 200 customers using RippleNet and over a dozen using XRP to bolster cross-border payments at the moment.
As Ripple continues with its On-Demand Liquidity service based on XRP digital asset with Algrim’s engineers on board, this implies that there will be more demand for the third-largest cryptocurrency. Undoubtedly, this will boost the price of XRP in the near-term. At press time, the cryptocurrency is trading at $0.258254 with an eye-popping 8.7% gains on the day.