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WisdomTree Launches Low-Cost XRP Cryptocurrency ETP on Exchanges

2024-12-02

WisdomTree, a renowned global financial products provider, has made a significant move by launching its newest cryptocurrency exchange-traded product (ETP). This development has sparked interest among investors and industry experts alike.

Unlock the Potential of Cryptocurrency with WisdomTree

Introduction to WisdomTree and its Financial Products

WisdomTree has long been at the forefront of the financial industry, offering a diverse range of products to meet the needs of investors. With a focus on providing innovative and reliable solutions, the company has built a strong reputation over the years. Their latest venture into the cryptocurrency space is no exception, as they introduce the WisdomTree Physical XRP ETP (XRPW).This ETP is listed on major exchanges such as Deutsche Börse Xetra, the Swiss SIX Exchange, and the Euronext exchanges in Paris and Amsterdam. One of its key features is the low management expense ratio of 0.50%, making it the most cost-effective ETP in Europe for gaining exposure to XRP.

Design and Features of the WisdomTree Physical XRP ETP

The fund is meticulously designed to offer investors a straightforward, secure, and cost-efficient means of accessing the price of XRP. It is fully backed by XRP, ensuring transparency and reliability. Through an institutional-grade, physically backed structure, investors gain exposure to the spot price of XRP.In addition, the fund employs a dual custody model with regulated custodians, providing an extra layer of security. The underlying assets are professionally secured in "cold storage," minimizing the risk of theft or loss. This combination of features makes the WisdomTree Physical XRP ETP an attractive option for investors seeking exposure to XRP.

About XRP and its Ledger

XRP is a native digital asset of the XRP Ledger (XRPL), a decentralized, permissionless, and open-source blockchain. The XRPL utilizes a Proof-of-Association (PoA) consensus mechanism, which is operated by universities, exchanges, businesses, and individuals. This mechanism is more efficient than the traditional Proof-of-Work (PoW) consensus mechanism, as it requires less hardware resources and consumes less energy.Created in 2012 specifically for payments, XRP stands out for its ability to settle transactions on the ledger in just 3-5 seconds. It was designed as a faster and more sustainable alternative to Bitcoin, offering a convenient way to bridge different currencies quickly and efficiently. XRP can be sent directly without the need for a central intermediary, making it a valuable tool in the world of cross-border payments and microtransactions.

Investment Insights and Perspectives

Following the launch of the WisdomTree Physical XRP ETP, Dovile Silenskyte, Head of Digital Asset Analysis at WisdomTree, believes that with the growing risk appetite, exposure to altcoins like XRP could outperform a standard Bitcoin and Ether allocation. In her opinion, XRP can be incorporated into a multi-asset portfolio alongside these major cryptocurrencies to reduce exposure to a single token.She emphasizes that cryptocurrencies represent more than 1% of the market portfolio and should be an integral part of a comprehensive investment strategy. As an asset class with low correlation to traditional asset classes, cryptocurrencies have the potential to enhance diversification and improve risk-adjusted returns in a multi-asset portfolio.Meanwhile, Alexis Marinof, Head of Europe at WisdomTree, highlights the significance of this new launch. It complements their existing range of physically backed cryptocurrency ETPs, providing investors with an additional solution to enhance their multi-asset portfolios. Cryptocurrency ETPs offer a regulated framework for investors, making them a preferred vehicle for accessing cryptocurrencies.With over 20 years of experience in providing and managing physically backed ETPs for institutional investors, WisdomTree brings global reach, scale, and resources to their cryptocurrency ETPs. Investors can benefit from this expertise and trust in the management of their assets.

Blockchain-based payments solutions company Orbital has made a significant move by launching its Stablecoin Payments Dashboard. This new offering aims to offer users valuable insights into stablecoin payment trends at a time when these digital currencies are gaining prominence in various transactions.

Unlock Insights into Stablecoin Payments with Orbital

Insights into Stablecoin Payment Trends

Orbital's new dashboard is designed to provide businesses with a clear understanding of how stablecoins are being used in consumer payments. As stated by Luke Wingfield Digby, co-founder and head of the research team, "Stablecoins are transforming global commerce, but businesses lack clarity on how to leverage them effectively for consumer payments." The dashboard filters out unrelated activities like DeFi and speculative trades, ensuring accurate insights into payment trends by analyzing "consumer-size transactions" up to $10,000. This allows businesses to make informed decisions about incorporating stablecoins into their payment processes.

Working with blockchain analytics firm Artemis.xyz, Orbital is able to provide a comprehensive view of stablecoin adoption for payments use cases. By focusing on these specific transactions, businesses can gain a better understanding of which tokens, blockchains, and exchanges are driving consumer adoption in the fast-evolving space of stablecoin payments.

Integration of Other Data Sources

In addition to on-chain data, Orbital plans to integrate other data sources to offer a broader perspective on stablecoin use across industries and regions. This will give businesses actionable insights into stablecoin payment behavior, allowing them to adapt their strategies accordingly.

For example, by combining data from different sources, Orbital can identify patterns and trends that may not be apparent when looking at data from a single source. This will enable businesses to stay ahead of the curve and make more informed decisions about their payment operations.

Impact of Stablecoin Market Growth

The launch of the Stablecoin Payments Dashboard comes at a time when stablecoins have achieved record market value. A report by Bloomberg News showed that the market capitalization for digital, dollar-pegged currencies has jumped 46% this year to a record $190 billion. Tether, the world's largest stablecoin issuer, has seen its token's circulation rise to almost $133 billion, accounting for nearly three-quarters of the stablecoin market.

Companies like Stripe and PayPal have also entered the stablecoin business, recognizing the potential of these digital currencies in cross-border payments. The Bloomberg report argues that these efforts could help prevent another major market crash, such as the $19 billion collapse of TerraUSD two years ago.

According to Sheraz Shere, GM payments and commerce at the Solana Foundation, "Blockchain solutions and stablecoins - I don't like to use the term crypto because this is more about FinTech - they've found product-market fit in cross-border payments. You get the disintermediation, you get the speed, you get the transparency, you get extremely low cost." This highlights the importance of stablecoins in modern payment systems and the role that Orbital's dashboard can play in facilitating their adoption.

Coinbase, a leading cryptocurrency exchange, has made a significant move by integrating Apple Pay as a payment method for its Coinbase Onramp. This innovative addition aims to simplify the onboarding process for crypto and provide a seamless experience for users.

Unlock the Future of Crypto Payments with Coinbase and Apple Pay

Enhancing User Experience with Apple Pay on Coinbase Onramp

Coinbase's decision to integrate Apple Pay into its Coinbase Onramp tool is set to transform the way users engage with fiat-to-crypto purchases. With over 60 million U.S. users of Apple Pay, this integration offers a convenient and accessible way for them to enter the world of cryptocurrencies. According to the release, it will provide a faster end-to-end experience, with fiat-to-crypto conversions taking just seconds. This eliminates the hassle and time-consuming processes that often accompany traditional onboarding methods. The lightweight KYC process for eligible purchases makes it even more appealing, allowing users to get started with crypto quickly and easily.Moreover, apps already using Coinbase Onramp will automatically see Apple Pay appear as an option when users make eligible purchases. This seamless integration ensures that users have a wide range of payment methods at their fingertips, enhancing their overall experience.

Expanding Coinbase's Offerings with Multiple Additions

This is not the first time Coinbase has made significant additions to its offerings. In November, Coinbase Wallet began allowing users to earn rewards by holding USDC on-chain. This feature is available in most regions worldwide and was made available to American users at that time. A week before, Coinbase acquired the Utopia Labs team to accelerate its onchain payments roadmap within Coinbase Wallet. Jesse Pollak, head of Base and Coinbase Wallet, emphasized that this acquisition will "accelerate our goal of bringing low-cost, fast and global payments to everyone around the world."In October, Coinbase added another partnership by announcing a money movement partnership with Visa. This integration connects Coinbase to the Visa Direct network, enabling customers to deposit funds into their accounts via eligible Visa debit cards. Akash Shah, senior director of product management at Coinbase, stated that this integration gives eligible customers real-time access to their funds for trading.These various additions showcase Coinbase's commitment to providing a comprehensive and innovative platform for crypto users. By continuously expanding its offerings and integrating with popular payment methods and partners, Coinbase is at the forefront of the crypto payments revolution.