News

Visa Acquires Ripple’s Partner, Earthport, for $250 million

Popular Credit Card giant, Visa Inc. has just purchased the ownership of payment network and Ripple partner, Earthport Plc, for £198 million ($251 million).

Expanding Horizon

According to a recent report by news outlet, Reuters U.K, Earthport who signed a publicized partnership deal with Ripple in its unveiling of the first ever of Distributed Ledger Hub, has now been acquired by Visa Inc. after a series of important events.
The purchase sees Ripple expanding into new regions, and the impressive milestones it keeps conquering among financial giants show no signs of abating.
Earthport entered a partnership deal with Ripple in January 2016 to unveil the first ever Decentralized ledger Hub (DLH) among companies offering financial services and set the pace for other financial institutions that would throng into Ripple’s club of blockchain-enabled banking services later on.
SWIFT—Society for Worldwide Interbank Financial Telecommunication—itself had discarded the potential of Ripple and blockchain technology in the financial or banking sphere, and had downplayed the benefits the technology could offer to banks and financial institutions across the world.
Well, since Earthport’s partnership with Ripple, more than 100 institutions under the “SWIFT” umbrella have disagreed. Brad Garlinghouse, CEO of Ripple, couldn’t resist poking a jab at the initial resolutions conceived by the SWIFT body a few years before. He said in November:

“SWIFT said not that long ago they didn’t see blockchain as a solution to correspondent banking. We’ve got well over 100 of their customers saying they disagree.”

Earthport’s partnership with Ripple saw a significant improvement in efficiency and solution to earlier besetting problems. While traditional cross-border payment methods could be slow and unpredictable in its price and delivery, Earthport’s blockchain platform allows direct access to local banks and removes hidden complexities and non-transparency that comes with traditional platforms. The company uses a single API (application program interface) to settle funds with local banking partners which include prominent institutions like Payoneer, Bank of America and Ripple itself.

How Earthport Fits into Visa’s Strategy

Visa Inc. bought Earthport’s shares four times its closing stocking price, as the company seeks to expand its cross-border payment services. Visa sees Earthport has the best solution to expanding its cross-border payment services given the sector alone saw an impressive 10% improvement in revenue in 2018. That Earthport was also having internal struggles of its own—2018 has seen Earthport’s shares decline by more than 28 per cent—made the acquisition easier and better suited for both parties.

Related posts
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTETFNewsxbtusd

Bitcoin May Never Go Below $50k Once An ETF Is Approved, Declares On-Chain Analyst

Bitcoin may never drop below $50k asserts on-chain analyst Ki-Young Ju. But as usual, there are conditions that follow this possibility. In a tweet, Ju analyzed that Bitcoin could follow the same path that gold took in 2004 when the first…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTNewsxbtusd

Quarterback Star Tom Brady Breaks Internet After Showing Interest In Bitcoin

Tom Brady, the American athlete who is widely regarded as the “greatest” quarterback in NFL history is the latest celebrity to show interest in the world’s most valued cryptocurrency Bitcoin. Brady who has a massive Twitter following of 1.9 million…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTNewsxbtusd

Almost $200 Billion Worth Of Bitcoin Is Currently At Risk – Report Warns

A recently published 2021 crypto report by Opimas LLC, a finance-based management consultancy firm, has revealed that approximately 3,480,000 out of the world’s mined 18.5 million Bitcoin, stands vulnerable to attacks as a result of improper safekeeping. The 36-page report…