Ripple Achieves Licensing Milestones as XRP Faces Market Pressures

Ripple has obtained two significant Money Transmitter Licenses (MTLs) in the U.S., granting the blockchain company permission to operate in New York and Texas, the company announced on X on Monday.

The new licenses are part of Ripple's broader effort to expand its reach across the U.S., where it now holds more than 55 MTLs. The licenses from New York and Texas are viewed as strategic due to the strong demand for real-time global payments in these states.

Ripple highlighted its ability to cater to both traditional financial institutions and crypto-focused businesses, offering seamless cross-border payment solutions.

With the latest acquisitions, Ripple’s U.S. licenses now support payments, custody, and stablecoin operations. Internationally, the company has secured licenses in Singapore, Ireland, the Cayman Islands, and Dubai.

“We’re continuing to see more interest from financial institutions to crypto businesses that want to unlock the benefits of crypto and blockchain for faster, cost-efficient and 24/7 cross-border payments,” said Joanie Xie, managing director of North America at Ripple.

Ripple reported processing approximately $70 billion in payment volume on its blockchain network to date.

Ripple CTO Addresses XRP Decentralization Concerns

The debate over Ripple’s role in the XRP Ledger (XRPL) and the extent of its decentralization has resurfaced, fueled by comments from Pierre Rochard, vice president of Research at bitcoin mining firm Riot Platforms. Rochard has been a vocal critic, accusing Ripple of lobbying efforts that conflict with the creation of a Bitcoin-exclusive strategic reserve in the United States, as outlined in a recent executive order by President Donald Trump.

The order, which proposes a "digital assets stockpile," has sparked heated discussions among Bitcoin maximalists and broader crypto proponents.

Rochard claimed Ripple's influence undermines decentralization, pointing to its substantial XRP holdings and alleged capacity to manipulate XRPL's structure. He argued that Ripple's control allows for actions such as forking the ledger, altering escrow mechanisms, or significantly increasing XRP’s supply – actions that, according to him, weaken claims of decentralization.

Ripple CTO David Schwartz responded to these allegations, emphasizing that XRPL operates on a consensus algorithm rather than proof of work. Unlike Bitcoin, where miners are incentivized financially, XRPL validators are unpaid, reducing incentives for dishonest or centralized behavior.

Schwartz highlighted the protocol's mechanism, where every five seconds, nodes reach consensus to resolve the double-spend problem – a structure designed to safeguard against unilateral control.

“Validators and consensus are not the XRPL's governance mechanism. The XRPL's governance mechanism is the rules enforced by the nodes participants run,” Schwartz explained, rejecting the notion that Ripple alone could enforce modifications.

He underscored XRPL’s decentralized nature, where proposed changes require collective agreement across independent validators, minimizing the risk of supply manipulation or system-wide alterations.

The broader context of this debate is Ripple's positioning amid discussions about a U.S. strategic digital assets reserve. Some, including Ripple CEO Brad Garlinghouse, argue for a diverse reserve that includes XRP, reflecting the innovation within the broader crypto industry.

In contrast, Bitcoin maximalists, including Rochard, advocate for an exclusive Bitcoin reserve, citing concerns over centralized entities like Ripple.

Adding to the discourse, Ripple critics have pointed to the company's trademark ownership over "XRP" as a potential source of undue influence. Schwartz dismissed these concerns, comparing Ripple's trademark control to open systems like Bitcoin, where similar arguments have held no legal weight in U.S. courts.

XRP Price Movements Reflect Market Volatility

Despite Ripple’s regulatory milestones, XRP’s price experienced a downturn, briefly falling below $3 on Monday. The decline followed broader market pressures linked to heightened interest in China’s DeepSeek AI platform, which negatively impacted tech and crypto markets alike.

XRP dropped as low as $2.68 before rebounding slightly. According to Coinglass, XRP futures saw $35.27 million in liquidations over the past 24 hours, reflecting the token’s price volatility.