Popular European cryptocurrency exchange Bitstamp has added a new trading market to their platform. Come January 17; Bitstamp users can trade Ripple against the Euro and US Dollar. This is a significant addition to the exchange platform. Moreover, these new trading pairs will be available to platform users all over the world at the same time.
XRP Is Coming To The Bitstamp Platform
It is an interesting decision to see Bitstamp enable XRP trading in both the USD and EUR market right now. More importantly, this also means payment processors can use this additional XRP liquidity to facilitate cross-border payments in and out of the European region. Support for these trading pairs will be enabled on January 17, and roll out to all regions Bitstamp is currently active in.
This news also signals Bitstamp as the first partner exchange for the new XRP incentive program. The European cryptocurrency exchange is fully licensed to work across all 28 European Union member states, which makes them an invaluable partner in the Ripple network as a whole. The Ripple incentive program is designed to increase liquidity and tighten spreads. Moreover, it will offer rebates and compensations to qualifying liquidity providers at partner exchanges.
Ripple’s Head of XRM Markets Miguel Vias stated:
“The relationship with Bitstamp and launch of XRP volume incentives underscores our commitment to making XRP the institutional standard bearer for value transfer globally. XRP is uniquely capable of introducing more liquidity to exchanges to support global payment volume, especially in exotic corridors. Ripple’s adoption with banks puts XRP in pole position to become a global settlement asset, which translates to more liquidity for Bitstamp, and more value for institutional and individual investors.”
According to Bitstamp, the customer demand for XRP was so overwhelming; they had no other choice but to add the asset as a tradeable pair against the EUR and USD. The addition of this new currency was rather smooth, as Ripple seems to be a good fit for EU license requirements. It seems this agreement works out well for all parties involved, although it remains to be seen how attractive the XRP trading markets will be on the Bitstamp exchange.
Ripple acknowledges the need to work together with more exchanges in the future. Although the project has gotten some very positive mainstream attention in 2016, liquidity for the underlying XRP asset remains a critical issue right now. The growing demand for global payments is a positive trend for Ripple, and bringing the XRP asset to all markets is of the utmost importance.
The R3 blockchain consortium recently trialed with XRP for interbank cross-border payments. This particular project was a resounding success, and it highlights the benefits of using Ripple in such a financial environment. XRP usage allows for cost-cutting and revenue opportunities for all participating institutions. With the wide availability and liquidity of the native asset, things are looking positive for the Ripple protocol moving forward.
Header image courtesy of Shutterstock
