XRP generated significant interest after solutions Judge Analissa Torres that it is not a security. Linqto COO Joseph Endoso spoke about how the company plans to use XRP in the upcoming version of Linqto 2.0.
Recall that Linqto is a company where US-accredited investors can buy Ripple shares.
Linqto tokenized private equity will be traded for XRP
IN interview with Tony Edward of Thinking Crypto, Endoso revealed that Linqto is working on a tokenized private investment concept that will use XRP as its sole payment method. As part of the pilot project, Linqto will build a new Special Purpose Vehicle (SPV), Endoso said. Notably, this SPV will be firewalled from the rest of the other SPVs and the main Linqto database.
Endoso said that after successfully setting up the SPV, Linqto will add and tokenize new assets.
“We are going to transfer PolySign to the custody of SPV so that we have an independent third-party custodian,” — Endoso said.
In addition, Linqto’s COO said the company will offer the product to other broker-dealers based outside of the US. According to Endoso, these broker-dealers must use PolySign or other trusted custodians of digital assets.
Interestingly, Endoso stated that the tokenized assets will be traded for XRP.
“We are going to sell these SPV-related tokenized assets for XRP. We will be paid in XRP for these tokenized assets.” Endoso added.
Endoso noted that a pilot program will be launched in the coming months. According to Endoso, these SPV transactions will be cleared and settled on the PolySign Atomic blockchain, which is currently on the testnet.
Endoso comments on Ripple’s victory
Meanwhile, Endoso commented on Ripple’s victory over the SEC in regards to declaring XRP a non-security. He called the event a “great victory” for the leading blockchain company.
He said that the recent court decision is an 80% win for Ripple and a 20% loss for the company.
“The bottom line is that the judge [Торрес] stated unequivocally that XRP itself, the token, is not inherently a security, and this is extremely important,” Endoso said. .
He said the decision was the exact opposite of what the SEC had argued, adding that Ripple could use XRP without violating securities regulations.
The meaning of Ripple’s victory
Endoso also said that this decision will have two important implications from an investment standpoint. First, he noted that this decision will clear the way for banks to use Ripple’s On-Demand Liquidity (ODL).
It is worth noting that ODL uses XRP as an intermediate currency between two fiats for instant cross-border settlements.
Banks will use Ripple’s ODL because there will no longer be the regulatory burden associated with buying and selling XRP while using the service, Endoso said. According to Endoso, this will support the demand for XRP, which will lead to a jump in the price of the asset.
Secondly, the COO of Linqto stated that Judge Torres’ decision will increase the intrinsic value of XRP on Ripple’s escrow.
“These two things are important factors in investing in Ripple stock.” Endoso added.