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While Ripple Labs and XRP continue to endure scrutiny in the United States, other countries and agencies may soon take a more favourable view of the latter. Rakuten Wallet, one of Japan’s major e-commerce platforms, has recently announced the restart of XRP trading on its platform.
Following concerns raised by the SEC’s lawsuit in the United States, Rakuten’s crypto-arm ceased XRP-related services in December of last year. At the time, the business stated that it was doubtful whether XRP’s liquidity could be secured. In light of the aforementioned legal action, the entity had also expressed concerns regarding the price stability of XRP.
Liquidity secured, stable price delivery
However, Rakuten will now resume XRP margin trading from 8 September since it has “determined that liquidity can be secured and stable price delivery to customers is possible,” according to a statement. Rakuten first started offering margin trading services last spring, with the cryptos on offer including Bitcoin, Ether and Litecoin, and XRP.
Exit liquidity and price stability are important aspects to consider when trading an asset on margin. Volatile price action along with low liquidity can contribute to huge losses for those betting on the asset.
Will others follow suit?
Understandably, the XRP community is buzzing with excitement as a result of this revelation, with many now expecting that US-based firms would follow suit. Following the SEC’s complaint against the blockchain firm, major exchanges such as Coinbase quickly suspended XRP trading.
The aforementioned development may be indicative of shifting sentiments about XRP and Ripple. It is also possible that other exchanges and service providers will follow suit with similar modifications in the near future. Realists, on the other hand, contend that this will not happen until the SEC-Ripple issue is resolved.
When it comes to crypto-offerings and services in Japan, Rakuten is the market leader. Rakuten Trade is also popular in Hong Kong, Australia, and Malaysia. As a result, this development is wonderful news for a large portion of the XRP community.
Earlier this month, Ripple’s European partner Azimo received more than $50 million in a series C fundraising round. Rakuten Capital, the wallet’s parent firm, spearheaded this initiative.