Crypto payment company Ripple has achieved a partial victory after a long legal battle with the U.S. Securities and Exchange Commission (SEC). This outcome has reignited Ripple's hopes for banks to use XRP in cross-border transactions. Stu Alderoty, Ripple's General Counsel, announced that they will initiate discussions with financial institutions and expect U.S. banks and other financial entities to resume using XRP and its ODL (On-Demand Liquidity) product.

Plans for Reengagement:

Ripple has announced its plans to start engaging with financial companies in this quarter following the court's decision. Alderoty expressed his anticipation that U.S. banks will return to using Ripple's ODL product. He highlighted the hope for financial institutions to facilitate cost-effective and convenient cross-border payments, underscoring Ripple's potential to provide a solution in this area.

Banks' History:

It is known that many major financial institutions have tested and collaborated with Ripple's technology. For instance, Bank of America experimented with Ripple's technology in 2019 but chose to wait for the outcome of the lawsuit. Prominent financial institutions like American Express and Santander also partnered with Ripple for cross-border payments in 2017. Ripple's existing customer base largely consists of non-U.S. companies.

Crypto Industry Response:

The crypto industry has welcomed Ripple's partial victory against the SEC. Following the court decision, the value of XRP soared by 100%, reaching up to $0.95. However, Alderoty acknowledged that this outcome is not a complete victory for Ripple. The possibility of appealing the decision and the ongoing process should be considered.

In Summary:

Ripple has rekindled its hopes for collaborating with financial institutions by achieving a partial victory in its legal battle with the SEC. The company plans to initiate discussions to enable banks to use XRP and the ODL product for cross-border payments. Nevertheless, a full victory for Ripple has not yet been secured due to the possibility of an appeal. While the crypto industry has positively received Ripple's partial victory, it is important to closely monitor developments in the upcoming periods. #ripple #SEC #XRP $XRP #BANK

Leading traditional financial companies operating in Turkey are increasing their activities in the crypto industry. Following Akbank's subsidiary Ak Yatırım, Garanti BBVA also made its crypto move, attracting attention. This news was announced by Webrazzi and considered a significant milestone in Turkey's financial world.

Garanti BBVA Crypto: Crypto Wallet and Transfer Service

Garanti BBVA announced its foray into the crypto industry as "Garanti BBVA Crypto." Initially, this service is only available to company employees and includes crypto wallet and transfer operations. However, the date for its general availability remains uncertain, and it is noted that crypto buying and selling transactions are not yet available.

Garanti BBVA's Crypto Job Postings

Garanti BBVA demonstrated its interest in the crypto industry through job postings. Previously published announcements indicated hiring for the position of "Digital Asset Liquidity Management Project Manager/Product Owner" and a search for a "Crypto Asset Specialist/Officer." The appointed specialist would actively contribute to the bank's "Crypto Asset" operations project.

Garanti BBVA Financial Technologies Inc.: Establishment of a New Company in the Crypto Sector

In an effort to expand its activities in the crypto industry, Garanti BBVA initiated the establishment of a company in financial technologies. Named "Garanti BBVA Financial Technologies Inc.," this company will engage in consultancy, valuation, and investment activities in financial technologies. #BBVA #BANK

Ak Yatırım's Acquisition of Stablex

Akbank's subsidiary Ak Yatırım took a significant step in the crypto industry by announcing its intentions to acquire a company called Stablex in March. The company signed a share purchase and participation agreement to acquire a majority stake. This move highlights Ak Yatırım's interest in the crypto sector and strengthens its growth strategy. #AkYatırım #Turkey

In Summary

The interest of traditional financial institutions in the crypto industry continues to grow in Turkey. The crypto moves of Akbank's subsidiary Ak Yatırım and Garanti BBVA are seen as indications of the increasing importance of cryptocurrencies in the financial world. These developments suggest that Turkey's financial sector could play a more active role in the crypto industry in the future. #GarantiBBVA

🌟 How do banks make money?

1/ You visit the loan officer at the bank to request a loan

2/ The loan officer asks you for papers and documents.
You submit the mortgage and other required documents

3/ After analyzing your application, the bank offers you different plans and conditions.

4/ You agree to one of the plans, and the bank provides you with loan agreements based on the agreed upon plan.

5/ When you receive the loan agreements or contract papers, you sign them. Suppose the loan amount is $100,000.

6/ The moment you sign the loan agreement for $100,000, that document becomes a bond or a promise from you to repay $100,000 plus interest in the future.

In essence, that paper turns into the financial market. 
The core business of a bank revolves around buying and selling securities.

7/ The bank buys the bond/guarantee/promissory note from you for $100,000 today.

You are the issuer/seller/borrower, while the bank is the buyer/lender/creditor.

When the bank buys this security from you, it takes action

8/ First, when the bank owns the bond, it becomes an asset for the bank.

Therefore, the bank adds the $100,000 in bonds along with its assets on the balance sheet.

For the balance sheet to remain in balance, when assets increase by $100,000, there must also be a $100,000 increase in liabilities/equity.

Assets = Liability + Equity.

9/ Here, bank deposits are considered obligations of the bank, as it is obligated to pay them.

Then, the bank recently added $100,000 to your bank account.

10/ This newly created deposit is just a digital entry, not originating from any other account. 
It was created at that moment by the bank.

This process is known as credit creation, and is a routine practice for commercial banks every time they issue a loan.

Nearly 97% of money exists as credit, while only 3% is cash/coin, which we commonly refer to as money.

Banks, especially commercial banks, do not lend money.

Instead, they create money out of nothing with every loan, whether it's $500 to an individual or $100 million to a company.

$BTC $ETH $BNB
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#BANK #BTC #ETH