Ripple’s XRP Turns Into Corporate Treasury Asset
Ripple’s XRP fell 1% on Friday after Worksport announced it would include the token in its corporate treasury.
Worksport, a company listed on the Nasdaq, is planning to incorporate Bitcoin and XRP into its corporate treasury, following in the footsteps of business intelligence firm MicroStrategy.
The manufacturer of tonneau covers said in a blog post on Thursday that it would spend up to $5 million to purchase XRP and Bitcoin. In addition to highlighting its long-term faith in cryptocurrencies as a store of value and an inflation hedge, the company said the strategic move aims to increase transaction efficiency.
“We are committed to staying ahead of market trends while prioritizing operational efficiency and shareholder value, as evidenced by our upcoming adoption of Bitcoin (BTC) and XRP (Ripple),” stated Steven Rossi, CEO of Worksport Ltd.
This is consistent with the growing institutional adoption and worldwide acceptance of digital assets. Given its ongoing legal battle with the Securities and Exchange Commission (SEC), Worksport’s decision to include XRP in its corporate treasury is a significant victory for the asset.
Judge Analisa Torres’ decision that XRP sold to retail investors does not qualify as securities but was appealed by the SEC. She also lowered the SEC’s $2 billion fine against Ripple to $125 million.
The SEC’s appeal does not dispute XRP’s non-security status but challenges certain aspects of the decision.
There has been increasing hope for Ripple Labs, especially after SEC Chair Gary Gensler announced on January 20 that he would leave the agency. Paul Atkins, the CEO of Patomak Global Partners, has already been nominated by President-elect Donald Trump to succeed Gensler. Brad Garlinghouse, the CEO of Ripple, is among the prominent crypto voices who have endorsed Trump’s choice of replacement.
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