Ripple is in the news today after it unveiled the first treasury management system (TMS), which supports native digital assets, in a bid to make institutional adoption seamless.
On Wednesday, the blockchain services provider said that the new TMS will feature digital asset accounts and a unified treasury. Notably, firms can send and receive XRP and Ripple’s stablecoin RLUSD through the digital asset accounts.
Similarly, fiat and crypto assets can be viewed and managed through the unified treasury feature. The new TMS will run on top of Ripple’s GTreasury.
The move follows Ripple’s acquisition of GTreasury last October for $1 billion. This is a popular platform which most Fortune 500 companies use for traditional cash management across the globe.
Therefore, the latest features mean the firm is aiming to help firms to easily manage their digital assets too with familiar audit trails.
However, Ripple isn’t stopping at treasury management.
Ripple eyes global payment integration
According to Renaat Ver Eecke, SVP of Ripple Treasury, the firm plans to integrate its global payment network with Ripple Treasury to allow corporations to earn yield on their idle balances.
Commenting on the update, CEO Brad Garlinghouse called the integrated treasury the “secret sauce” to reducing friction to institutional adoption. Bullish on the move, he posed,
Ripple Treasury is on a tear – last year facilitating $13T in payments for customers. This year, with the addition of native digital asset capabilities?
Last year, Ripple acquired Hidden Road for $1.25 billion and formed its brokerage arm. In other words, Ripple is slowly positioning itself as the entry point for institutional players into the space.
For its part though, XRP was not swayed by the bullish update. Instead, the altcoin remained in lockstep with Bitcoin’s swings. At the time of writing, it had dropped by 5% to $1.28 as BTC slipped to $65K.
That said, Spot XRP ETFs saw $31 million in net outflows in March. So far in April, they have bled $1.32 million, underscoring a distressed market.
From an on-chain perspective, however, whales became net buyers since March. If large investors continue their accumulation spree, the altcoin could have better recovery odds should the broader market sentiment improve in the near term.
Final Summary
- Ripple Treasury has activated support for crypto assets alongside fiat in a single platform with familiar audit tools for corporates.
- Aggressive institutional scaling is yet to boost XRP sentiment and bidding though.
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