Crypto

“They're Still Sitting on the Same Old Rails”: Ripple's Jazzi Cooper

Published

7 months ago

June 13, 2024

“They're Still Sitting on the Same Old Rails”: Ripple's Jazzi Cooper

On the ground for XRP Ledger Apex 2024, we caught up with
Jazzi Cooper, Lead Product Manager at Ripple X and a major driving force behind its ambitious mission. In an
exclusive interview, Jazzi shared insights into Ripple X’s role in reshaping
the financial landscape and paving the way for a future powered by blockchain
technology.

XRP Ledger Apex 2024

Why Traditional Finance Needs a Disruption

“Traditional finance rails today, as we know, are
insufficient. Payments take multiple days if not weeks (…) and settlement is slow,” Jazzi remarked,
setting the stage for a discussion on the urgent need for disruptive solutions
in the financial sector.

The bold promise of blockchain technology lies in its
potential to revolutionize financial systems, a vision embodied by Ripple X and
its dedication to the XRP Ledger. As traditional financial infrastructures
strain under the weight of inefficiencies, Ripple X champions a future where
transactions are swift, transparent, and decentralized. This ambition is not
merely a theoretical exercise but a concerted effort to redefine how value is
transferred and recorded.

One of the main drivers for this charge is Jasmine Cooper,
affectionately known as Jazzi, who heads the Institutional DeFi Products group.
Her team’s mission is to cultivate a suite of products that capitalize on the
unique strengths of the XRP Ledger, thus offering a robust alternative to the
entrenched financial systems that dominate today’s markets.

On Redefining Value Transfer

“The XRP Ledger is purpose-built for value transfer.
We think it’s a very ideal blockchain environment for the issuance, the
movement, the trading of tokens,” Jasmine emphasizes, underscoring the
platform’s suitability for disrupting traditional finance.

Central to Ripple X’s strategy are three key product
verticals: tokenization, financial protocols, and infrastructure. Tokenization
involves the creation of digital tokens that represent real-world assets,
offering a new avenue for asset management and investment. Financial protocols
cover on-chain trading and lending, leveraging blockchain’s transparency and
efficiency. The infrastructure vertical focuses on building the essential
components, such as oracles and cross-chain bridges, which support the seamless
operation of these systems.

Out with the Old?

“Most of fintech today, all of your neobanks, all of
your digital wealth advisors, these have moved a little bit forward by offering
nice UIs… But they’re still sitting on the same old rails.”

As a stark contrast, one of the most exciting developments at Ripple X is the
introduction of multipurpose tokens, a new standard designed for the
tokenization of real-world assets.

“We’ve introduced a new token standard called
multipurpose tokens that’s purpose-built for tokenization of real-world
assets,” explains Jasmine, shedding light on Ripple X’s commitment to
innovation.

This innovation allows metadata to be
directly attached to the blockchain asset, ensuring a higher degree of
reliability and utility. Such advancements pave the way for more sophisticated
use cases, such as bond and equity tokenization, and open up new possibilities
for asset management and investment.

Accessible Blockchain for All: User-Centric Design & Financial Inclusion

Shifting gears, Jasmine’s perspective on the interplay between technology
and society underscores a fundamental truth: technology must align with user
needs and expectations to achieve widespread adoption.

“We ultimately have to meet people where they are in terms
of their tolerance for usability, for risk, for trust, user experience that they
demand across the board,” Jazzi added.

This principle guides
Ripple X’s development efforts. Instead of imposing complex, crypto-native
solutions that might alienate everyday users, Ripple X aims to meet users where
they are, providing intuitive and accessible products that leverage
blockchain’s advantages without overwhelming complexity, thus emphasizing the
importance of user-centric design.

Financial inclusion is another cornerstone of Ripple X’s
vision. By democratizing access to financial services, blockchain
technology can empower individuals in regions where traditional banking
infrastructure is inadequate or nonexistent. Decentralized lending protocols,
for example, can offer capital to those who lack access to conventional
financial institutions, thus fostering economic opportunities and growth in
underserved communities.

Looking ahead, Ripple X is poised to make significant
strides in the realm of real-world asset tokenization. Upcoming announcements
and projects promise to further integrate blockchain technology into various
sectors, enhancing the liquidity and utility of digital assets. Additionally,
the EVM side chain initiative aims to bridge Ethereum’s extensive developer
community with Ripple’s robust infrastructure, creating synergies that could
drive further innovation and adoption.

Wrapping up

In the face of skepticism and the noise surrounding
cryptocurrencies, Ripple X’s commitment to practical, impactful solutions
stands out. By focusing on real-world problems and developing technology that
enhances user experiences, Ripple X is not only pushing the boundaries of what
blockchain can achieve but also ensuring that these advancements are accessible
and beneficial to a broad audience. The future of finance, as envisioned by
Ripple X, is one where blockchain technology seamlessly integrates into our
daily lives, enhancing efficiency, transparency, and inclusion in ways that
traditional systems have long struggled to deliver.

XRP Ledger Apex 2024

Why Traditional Finance Needs a Disruption

On Redefining Value Transfer

Out with the Old?

As a stark contrast, one of the most exciting developments at Ripple X is the
introduction of multipurpose tokens, a new standard designed for the
tokenization of real-world assets.

Accessible Blockchain for All: User-Centric Design & Financial Inclusion

“We ultimately have to meet people where they are in terms
of their tolerance for usability, for risk, for trust, user experience that they
demand across the board,” Jazzi added.

Wrapping up

Crypto

Sen. Bernie Moreno supports loosening regulations on some cryptocurrency assets

Published

6 hours ago

January 8, 2025

Press Room

Sen. Bernie Moreno supports loosening regulations on some cryptocurrency assets

WASHINGTON, D.C. — Bernie Moreno’s victory in the Ohio Senate race was a big win for the cryptocurrency industry, which spent more than $40 million supporting his candidacy. Now in office, Moreno said he would support legislation the industry is seeking that would govern how it is regulated.

What You Need To Know

Sen. Bernie Moreno said he would support new legislation to govern how the cryptocurrency industry is regulated

The crypto industry spent tens of millions of dollars to support Moreno in the Ohio Senate race

Moreno’s support of laws sought by crypto interests is a stark contrast from his Democrat predecessor, former Sen. Sherrod Brown

Moreno has long been involved with the crypto industry. He has a background in blockchain, the same technology used to for cryptocurrency. He previously founded Champ Titles, a digital car titling company that was among the first to use blockchain for digital titles.

The cryptocurrency industry also helped fuel his Senate win. Super PAC Defend American Jobs spent $40.1 million on the race, more than any other outside group. The super PAC is affiliated with Fairshake, another super PAC that is funded by Coinbase, Ripple and other crypto companies.

Moreno’s support of laws sought by crypto interests is a stark contrast from his Democrat predecessor, former Sen. Sherrod Brown.

As Chairman of the Senate Banking Committee, Brown blocked advancing a bill to loosen the regulation of some crypto assets, known as the Financial Innovation and Technology for the 21^st Century Act, or FIT 21. The bill would reclassify many kinds of crypto as commodities rather than securities. Rules for commodities, examples of which include oil, wheat or electricity, are generally looser than those for financial securities like stocks or bonds. The bill passed the House last Congress, but remained stalled in the Senate Banking Committee.

Moreno now sits on the Banking Committee, as well as the Senate Committees for Homeland Security and Governmental Affairs; Commerce, Science and Transportation; Budget; and Banking, Housing and Urban Affairs.

“I got the committee assignments I wanted,” Moreno said. “Senator Thune was kind enough to get me on Banking.”

Moreno disagreed with the stance Brown had taken against legislation like FIT 21, countering that the rapidly growing cryptocurrency industry needs better clarification on regulations.

“Crypto is not looking to be deregulated. Crypto is looking to be treated fairly, to have transparent, consistent regulations that treat everybody equally and fairly. That’s what we want,” he said. “Look, at the end of they day, I understand how the technology works and I understand the industry. My opponent had no idea.”

With a new Congress, the House would have to re-introduce and pass another cryptocurrency regulation bill. FIT 21 previously received bipartisan support, with nearly all Republicans and about a third of Democrats voting for it.

Similar legislation would likely move more quickly this Congress, in which Republicans control the House, Senate and White House.

Crypto

Cryptocurrency options in 401(k) plans: Here's what to know to make the most of your workplace retirement plan

Published

14 hours ago

January 8, 2025

Press Room

Cryptocurrency options in 401(k) plans: Here's what to know to make the most of your workplace retirement plan

The rally in bitcoin and other cryptocurrency prices has generated excitement among some investors, but investment advisors are largely still skeptical that those volatile assets belong in a 401(k) plan or other qualified retirement savings plans.

Crypto was one of the fastest-growing categories of exchange-traded funds in 2024. The most popular of these funds, the iShares Bitcoin Trust ETF (IBIT), has ballooned to over $50 billion in total assets.

Although crypto is a small part of the 401(k) plan market, it could grow substantially in 2025.

President-elect Donald Trump has suggested he will create a strategic reserve of bitcoin for the U.S. and has nominated Paul Atkins, a cryptocurrency advocate, to chair the Securities and Exchange Commission. The SEC’s approval of spot bitcoin and ethereum exchange-traded funds in 2024 was a key change for the industry.

More from Your Money:

Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.

The law covering 401(k) plans requires plan sponsors to act as fiduciaries, or in investors’ best interest, by considering the risk of loss and potential gains of investments. The Labor Department has cautioned fiduciaries to exercise “extreme care” before adding crypto options to a 401(k) plan’s core investments.

Labor Department officials, however, haven’t required fiduciaries to select and monitor all investment options, like those offered through self-directed brokerage windows, according to the Government Accountability Office. Nearly 40% of plans now offer brokerage windows in their 401(k) accounts, according to a 2023 survey by the Plan Sponsor Council of America.

Pros and cons of crypto in a 401(k) plan

Fernando Gutierrez-Juarez | Picture Alliance | Getty Images

Views are mixed about how much crypto to add to retirement savings or if it’s wise to allocate any at all.

Some financial advisors say crypto can work for a 401(k) plan because its movements are unconnected to the stock market and it functions even if a fiat currency is devalued.

“Crypto should be a part of a 401(k) plan because it’s a non-correlated alternative asset class,” said Ivory Johnson, a certified financial planner and founder of Delancey Wealth Management in Washington, D.C.

“With that said, investors need to ensure that they take their risk tolerance and time horizon into account which will define the target allocation,” said Johnson, who is also a member of the CNBC Financial Advisor Council. “The more volatile an asset class is, the less you need of it in the portfolio because you presumably get more bang for your buck.”

Johnson recommends cryptocurrencies range from 2% to 8% of an investor’s portfolio.

Other experts point to volatility and risk as reasons to be conservative.

“People saving for retirement should probably be even more conservative, because adding crypto to a 401(k) plan would significantly increase the risk that your retirement nest egg could suffer a large loss at the wrong time,” said Amy Arnott, a chartered financial analyst and portfolio strategist with Morningstar Research Services.

Morningstar found that since September 2015, bitcoin has been nearly five times as volatile as U.S. stocks, and ether nearly 10 times as volatile. That type of volatility adds a large risk to a portfolio even with a small amount invested.

401(k) contribution limits for 2025

Regardless of what assets are in a 401(k) plan, there are limits to how much you can contribute. For 2025, an employee can contribute up to $23,500 in a 401(k) and other employer-sponsored plans — that’s $500 more than in 2024.

People age 50 or older can make a “catch-up contribution” of up to $7,500. And those age 60 to 63 years old can supersize that, with a catch-up contribution of up to $11,250 for 2025.

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Crypto

Prospects for Improved Relations Between the Cryptocurrency Industry and Banks Under the Trump Administration

Published

22 hours ago

January 8, 2025

Press Room

Prospects for Improved Relations Between the Cryptocurrency Industry and Banks Under the Trump Administration

With just over two weeks left until Donald Trump takes office, there are prospects that the relationship between the cryptocurrency industry and the banking sector, which has been at odds, could change positively.

According to The Block, a cryptocurrency-focused media outlet, TD Cowen predicts that under the Trump administration, banks may see an improvement in their relationship with the cryptocurrency industry.

Jaret Seiberg and the Washington Research Group stated in a report, “Banks have the responsibility to comply with Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) regulations and manage risks such as liquidity and concentration,” adding, “If the Trump administration takes power, it is inevitable that the relationship between traditional finance and the cryptocurrency industry will change positively.”

However, they also mentioned that some banks may still take a cautious stance. They said, “Some banks may still see risks in increasing relationships with cryptocurrencies,” and “this could be targeted by new banks.” Additionally, stablecoins (assets linked to the value of fiat currency) were highlighted as the cryptocurrency sector that banks would be most interested in, as banks hold cash, making them advantageous for issuing stablecoins.

In the U.S., there has been ongoing conflict between the cryptocurrency industry and the traditional financial sector, particularly banks. There have been conspiracy theories suggesting that banks have implicitly enforced cryptocurrency-related sanctions, known as Operation Chokepoint 2.0. Some cryptocurrency figures have claimed that banks have tried to restrict access to traditional financial services for the cryptocurrency industry.

Brian Armstrong, the founder of Coinbase, commented on Operation Chokepoint 2.0, saying, “It actually happened. Unethical and un-American actions occurred under the Biden administration,” and “We are currently gathering evidence from victims through the Freedom of Information Act (FOIA).”