Ripple’s XRP is Purely a Security Token

UK’s Financial Regulator Says No

The co-founder and CEO of Wirex, Pavel Matveew, has branded Ripple’s XRP as an example of security token, a statement he made while giving example of tokenization use cases.

At the Barcelona Trading Conference 2019, where Pavel delivered a close to 20 minutes keynote presentation tagged Real “World Tokenisation: Use Cases in the Financial System”, he elaborated on the use cases of digital currency, expanding on the types of tokens in existence.

He spoke on stable currency, mentioning Wirex’s partnership with Stellar (XLM) to launch stablecoin, and Facebook’s decision to launch its stable currency soon.

The financial expert said fiat stable currencies are the future of money since they do not have problems encountered by notable cryptocurrency.

The CEO of Wirex, a debit card company with around 2.5 million registered customers and over 3000 corporate customers, spoke extensively on cryptocurrency and payment.

He CEO said some tokens are used to make payments for goods and services. While in some instance, some are referred to as utility tokens.

At the conference, held between July 11 and 12 2019 in Barcelona, Pavel also spoke about security tokens, which is are used for shares, real estates among others. He said this type of security tokens bring in some income in the future.

Ripple’s XRP is Purely a Security Token

Speaking on security token, Pavel said “XRP is a good example here which is a purely security token but is trying to be a payment token.”

In the history of XRP, there have been series of discussions on whether XRP is a security or not. Different experts have weighed in on the issue at some time in the past.

Some are of the opinion that Coinbase and some other cryptocurrency platforms listing XRP denote that the digital currency is not a security token.

Recently, Today’s Gazette reported that the United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), referenced that Ripple’s XRP and Ethereum have similarities.

FCA, which offers regulatory services to over 58000 firms in the financial industry said the two tokens can serve as utility and exchange tokens, pointing that they are both not security tokens.