The correlation between tech and crypto was evident on Monday, as cryptocurrencies experienced a sympathy meltdown following a crash in tech stocks. This came in the wake of news that Chinese start-up DeepSeek’s AI tool could rival its US counterparts in the AI game at a much lower cost.
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The huge sell-off was a bit unfortunate for the third biggest crypto Ripple (XRP) as it came on the same day the company announced it had obtained MTLs (Money Transmitter Licenses) in New York and Texas as part of its strategy to broaden its domestic presence in the U.S. under the new crypto-friendly Trump administration.
The MTLs enable Ripple Payments customers to utilize a licensed version of its cross-border payments service, where Ripple oversees transactions on behalf of its clients. In both New York and Texas, Ripple highlighted significant demand for compliant, real-time global payment services from banks and cryptocurrency companies. The latest licenses increase Ripple and its subsidiaries’ global MTLs to over 55, 33 of which are in U.S. states.
Ripple has also been eyeing inclusion in the new administration’s crypto plans and is keen to play a part in “the creation of a strategic national digital assets stockpile,” a component of the digital asset executive order introduced by Trump.
That, however, has not gone down well with some Bitcoin (BTC) proponents. Ripple has long faced criticism for not being a true cryptocurrency in the sense that is a semi-centralized blockchain with Ripple having significant influence over the way XRP is distributed.
Riot Platforms’ VP of Research, Pierre Rochard, went so far as to say that it is not the Fed nor banks but rather Ripple that is the “biggest obstacle for the Strategic Bitcoin Reserve,” pointing to Ripple’s extensive political lobbying efforts and its active role in developing central bank digital currencies (CBDCs). He also criticized Ripple for what he viewed as its centralization, claiming that the control exercised by certain figures and the XRP Foundation undermines the decentralized principles advocated by Bitcoin supporters. Meanwhile, Ripple CEO Brad Garlinghouse has actively defended the company’s stance, claiming his efforts are “actually increasing the likelihood of a crypto strategic reserve (which includes bitcoin) happening.”
While the cryptocurrency space continues to evolve, conflicts like these underscore the contrasting priorities and visions of its participants. The tension between XRP and Bitcoin highlights the ever-changing and diverse nature of the cryptocurrency landscape.
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