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XRP Rallies as Societe Generale Pumps Up Ledger with MiCA-Compliant Stablecoin
- XRP rose sharply by 40%, reaching a new 2024 high of US$0.84, then corrected but remains up by 18%.
- The price increase comes despite Ripple’s ongoing legal battle with the SEC over alleged securities violations.
- Societe Generale announced the EURCV stablecoin for the XRP Ledger, enhancing its utility and appeal.
XRP has rallied as much as 40% over the past few days, reaching a 2024 high trading close to US$0.84 (AU$1.30) in the early hours of Friday morning, Australian Time. While it has seen a correction since, at the time of writing XRP trades for US$0.82 (AU$1.26), still up 18% from yesterday when it was just under US$0.68 (AU$1.05).
Many in the XRP community are happy to see the price move this quick, as XRP has missed out in the last bull run, due to the ongoing legal case between Ripple and the US Securities and Exchange Commission (SEC).
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The SEC had alleged that XRP sold by Ripple and executives Brad Garlinghouse and Chris Larsen had violated federal securities laws.
The case is still ongoing, with both parties having filed appeals. MetaLawMan, John E. Deaton and Jeremy Hogan gave an excellent update on the case in their latest CryptoLaw video, saying the appeal didn’t really come as a surprise but they highlighted the pointless pursuit of the SEC.
MetaLawMan, aka James Murphy, said it is stunning that the SEC was unable to find any victim in the case, yet every single XRP holder has become a victim of the lawsuit.
Societe Generale Brings Stablecoin to XRP Ledger
So, while the lawsuit is continuing, it didn’t have an obvious effect on the recent XRP price pump. However, what likely contributed to the price increase – among Gary Gensler resignation rumours – was the announcement by the French multinational bank and financial services firm Societe Generale (SG).
In a statement they said that the EURCV stablecoin will be coming to the XRP Ledger. The stablecoin which is compliant with strict European regulations – the so-called MiCA (Markets in Crypto-Assets Regulation), one of the most comprehensive frameworks right now – has been deployed on several other blockchains such as Solana and Ethereum.
SG said EURCV will “benefit from the scalability, speed, and low cost of the XRPL, a secure and decentralized Layer 1 blockchain”.
Guillaume Chatain, Chief Revenue Officer at Societe Generale-FORGE, commented on the advantages of the XRP Ledger:
The XRP Ledger is the ideal platform to complement our existing deployments due to the combination of speed and cost-efficiency. Our decision to launch this stablecoin on this blockchain was driven by our desire to offer next-generation, compliant digital assets that promote transparency, security, and scalability.
Guillaume Chatain, Societe Generale-FORGE Under MiCA, EU stablecoin issuers must register as financial institutions, publish detailed white papers with Digital Token Identifiers (DTIs), and maintain transparent, liquid reserves, enhancing investor knowledge and regulatory oversight.
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Tether (USDT) does not currently meet MiCA compliance, while Circle (USDC) says it has achieved compliance, as the only top-ten stablecoin by market cap. Their smaller EURC stablecoin is also compliant, according to Circle.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
