Key Insights:
- Ripple plans to acquire BC Payments Australia to obtain an AFSL license
- The deal gives Ripple access to the AFSL framework
- Market activity in XRP increased marginally
Ripple is looking forward to increasing its regulatory presence in the Asia-Pacific region by acquiring an Australian payments company with an Australian Financial Services License (AFSL).
Ripple Targets AFSL License to Expand Australian Payments Operations
According to a press release issued Wednesday, Ripple intends to acquire BC Payments Australia, an entity connected to the European Banking Circle Group. The transaction would provide Ripple with access to the company’s Australian Financial Services License (AFSL), a regulatory authorization that allows firms to provide financial services under Australia’s licensing framework.
Company representatives said the license would strengthen the firm’s ability to integrate digital assets into its payment services while maintaining compliance with Australian financial regulations.
Source: Ripple
The purchase of BC Payments Australia is expected to close on April 1, according to a report from The Australian, which cited comments from Ripple’s Asia-Pacific managing director, Fiona Murray. Through the transaction, Ripple would gain direct access to the AFSL framework governing financial service providers in Australia.
Murray stated that institutional interest in digital assets in the region has continued to grow, creating conditions that justify further investment in regulatory infrastructure. Ripple noted that obtaining the AFSL would allow its payments platform to manage several stages of a transaction within a single operational framework.
The company reported that the structure enables it to integrate both legacy financial infrastructure and digital asset systems into its payments system.
Ripple Strengthens Regulatory Presence.
Over the last year, the company has sought licensing systems to facilitate its payment services and digital asset infrastructure across various financial markets.
Additionally, Ripple was granted conditional approval for a national trust bank charter in the United States. The charter would allow the company to operate a regulated trust entity within the U.S. financial system. In addition, Ripple has obtained payment licenses in Singapore, the United Arab Emirates, and the United Kingdom during the last 12 months.
The firm claimed it currently holds over 75 regulatory licenses worldwide. The growing number of approvals indicates that the firm is working to establish a regulatory framework to facilitate the provision of digital asset services in international markets.
Ripple Grows Institutional Infrastructure.
Ripple has improved its financial services platform through a series of acquisitions to strengthen institutional user services and expand operational diversification.
The purchase of Hidden Road’s non-bank prime brokerage is one of the prime acquisitions. The company was acquired and incorporated into Ripple’s operations, where it was renamed Ripple Prime. The platform offers a range of services, including clearing, financing, brokerage, derivatives trading, swaps, foreign exchange transactions, and fixed-income products.
Ripple has also expanded its enterprise financial infrastructure by acquiring the corporate treasury platform GTreasury. The company stated that these acquisitions are part of larger initiatives to increase the number of ways XRP is used and its Ripple USD (RLUSD) stablecoin.
Simultaneously, Ripple has been building its payments platform by adding custody services, collection infrastructure, and liquidity management capabilities, enabling both fiat currencies and stablecoins.
Asia-Pacific Expansion and Market Activity
According to company data, payment volume associated with Ripple’s network nearly doubled over the past year as adoption increased among regional partners.
Several Australian financial service providers currently use Ripple’s payments infrastructure. These include Hai Ha Money Transfer, Novatti Group, Stables, Caleb & Brown, Flash Payments, and Independent Reserve.
There has also been a slight shift in XRP market activity in recent trading sessions. According to CoinMarketCap, the asset’s price increased by about 1 percent over the last couple of hours to $1.39. The volume of trading also surged by about 37% in the past day, indicating that the market was active.
The indicators of the derivatives market indicate further trading activity. According to the CoinGlass data, the open interest of the XRP futures rose by 0.43% to some $2.40 billion in the past 24 hours.
