With leading cryptocurrency exchange Coinbase’s recent announcement of adding Ethereum Classic, Ripple’s CEO Brad Garlinghouse has been pushing Coinbase to list XRP to the platform. Coinbase currently only offers Bitcoin, Bitcoin Cash, Ethereum, and Litecoin and has no announcements of adding any other currencies (besides Ethereum Classic) any time soon.
Ripple is ranked as the 3rd largest cryptocurrency in terms of market capitalization at approximately $21 billion market cap. Garlinghouse claims Ripples adoption is growing when it comes to its blockchain technology being used by financial institutions. The XRP coin is meant to be used to speed up transactions as well as lowering costs of international payments.
“As we solve problems at scale for institutions, I think it’s in Coinbase’s interest to participate in that.”
-Garlinghouse during an interview with Fortune
The thought of adding Ripple to Coinbase is not a new one as Ripple enthusiasts have been pushing for the addition for quite some time now. Coinbase has yet to confirm there are any plans to list Ripple citing securities laws as the main reason. The SEC has given one of the number one indicators of whether a digital currency being a security or not by the level of centralization.
“Systems that rely on central actors whose efforts are a key to the success of the enterprise” would be subject to “application of the securities laws.”
-SEC official William Hinman
Garlinghouse has refuted the idea that Ripple is as centralized as everyone believes, even though the majority of Ripple’s ownership being in the hands of the Ripple foundation.
“I think it’s really clear that XRP is not a security. XRP’s blockchain, or public ledger, exists independent of Ripple and would keep functioning even if the company failed; what’s more, XRP tokens serve a technological purpose (facilitating monetary transactions) that traditional securities like stocks do not. XRP also does not entitle its holders to a stake in Ripple the company itself.
I don’t think that our ownership of XRP gives us control. Saudi Arabia owns a lot of oil—that doesn’t give them control of oil.”
-Garlinghouse on Ripple’s securities status
Garlinghouse has stated he has no control over whether Coinbase one day decides to add XRP to the platform. The possibility has not been outruled by Coinbase but it seems the US based fiat-to-crypto exchange may be waiting for more clarification on XRP’s status from regulators before making a move. Last week the New York based trading company itBit did receive approval for a bitlicense to allow trading of Steller Lumens, a cryptocurrency that was created by the founder of Ripple, so the possibility of XRP being added to Coinbase or other fiat-to-crypto exchanges could definitely be a reality in the near future.