- XRP is a digital asset built for global payments by its parent company, Ripple Labs.
- TaoTao is a Japanese cryptocurrency exchange where experienced traders can execute trades seamlessly.
- TaoTao will relist XRP on its exchange amid its brawl with the Securities and Exchange Commission.
What did TaoTao announce?
TaoTao is a Japanese cryptocurrency exchange where experienced traders can execute trades seamlessly. The exchange offers trading products in several cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash and many more.
The exchange has announced that it will relist XRP on its platforms, allowing everyone to buy and sell it. The Japanese exchange had previously removed it from exchanges due to the ongoing lawsuit initiated by the American financial regulator, Securities and Exchange Commission against Ripple Labs on the pretext that XRP was a security and not a registered cryptocurrency.
TaoTao was acquired wholly by SBI holdings on October 7, 2020. The terms of the purchase were not disclosed to the public. The announcement of the acquisition came to light after Binance refused to establish a partnership with the exchange.
SBI holdings is a financial services company based in Tokyo, Japan. The huge asset management firm is also a long-time partner of Ripple labs due to which TaoTao has agreed to relist its licensed cryptocurrency on its exchange. Due to this long-term relationship between Ripple Labs and SBI holdings, XRP has not been ruled out as a digital asset. Many exchanges such as Coinbase Pro had removed XRP from its exchange following the lawsuit filed by the Securities and Exchange Commission.
Thus, for all the factors mentioned, TaoTao will relist XRP on its platform on September 22, 2021 and it will handle all physical transactions for the same.
How is SBI holdings helping XRP?
SBI Holdings has agreed to relist its partner’s cryptocurrency, XRP, on its subsidiary, TaoTao exchange. In addition to this, the management company also announced that it will be launching a cryptocurrency fund later this year. This fund will be making investments in popular cryptocurrencies such as Bitcoin, Ethereum and XRP. It has agreed to allocate a part of its portfolio in XRP even though its parent company, Ripple Labs, is being sued by the Securities and Exchange Commission.
Primarily, SBI has shown great support because the lawsuit is about XRP being a security and not a digital currency as claimed by Ripple Labs. SBI holdings will be accepting investments from investors when the fund goes public and a minimum bar will be set for the funds. Thus, this will boost the demand for XRP which has become rather meek after the lawsuit.