Crypto Industry in Transition: Ripple Pursues Banking License While Galaxy Digital Invests in Prediction Markets

Ripple on the Path to Full Banking Services

The cryptocurrency industry is currently experiencing a phase of fundamental transformation. While smaller companies reposition themselves outside the established heavyweights, major players are pushing into traditional financial services. Foremost among them is Ripple Labs, which following a successful settlement of its legal dispute with the U.S. Securities and Exchange Commission (SEC) is now pursuing significantly more ambitious goals ^[2].

According to Sal Gilbertie, CEO of Teucrium Trading, Ripple could "literally build a competitor to JPMorgan" with a U.S. banking license and would have "incredible capital" at its disposal ^[2]. The company had already applied for a national banking license with U.S. regulators in the summer. If approved, Ripple would be among the first crypto companies to hold such a license ^[2].

XRP as an Institutional Liquidity Instrument

According to Gilbertie, regulatory clarity in the United States could unlock enormous institutional liquidity. With a banking license, access to payment networks, and custody capabilities, XRP would grow beyond its previous function for cross-border remittances and could also serve as a capital reserve or liquidity instrument ^[2].

The positive development is already reflected in the market: Following the launch of the first XRP spot ETFs by Canary, Bitwise, Grayscale, and Franklin, the Ripple coin recorded significant inflows ^[2]. Gilbertie praised Ripple as a "machine" with a "very disciplined team" of "creative people working together as a team" ^[2].

Galaxy Digital Conquers Prediction Market Segment

While Ripple targets the traditional banking sector, Galaxy Digital is positioning itself in another emerging segment: the prediction platform market. The company aims to serve as a liquidity provider on Polymarket and Kalshi ^[3].

These prediction markets, where users can wager on real events such as sports results or political decisions, have experienced remarkable growth. The two leading platforms, Polymarket and Kalshi, recorded combined cumulative trading volumes of $42.4 billion ^[3]. They achieved their breakthrough during the 2024 U.S. presidential election, when Polymarket correctly predicted the election outcome ^[3].

Competition for U.S. Market Leadership

Currently, the two platforms are competing for dominance in the U.S. market. Kalshi, which is regulated by the U.S. Commodity Futures Trading Commission (CFTC), has recorded higher monthly trading volumes than Polymarket since September ^[3]. However, Polymarket is preparing a comeback: Following its acquisition of the U.S.-licensed derivatives exchange QCX for approximately $112 million in July, the company is now gradually rolling out its platform to selected U.S. users ^[3].

Polymarket also secured a multi-year partnership with TKO Group Holdings, the owner of UFC and Zuffa Boxing, and will become their "official and exclusive prediction market partner" for live fan engagement ^[3]. Another strategic coup was achieved through Intercontinental Exchange (ICE), owner of the New York Stock Exchange, which invested $2 billion in Polymarket and reached a data distribution agreement ^[3].

These developments demonstrate how the cryptocurrency industry is increasingly professionalized and expanding into new business fields—from traditional banking services to innovative prediction markets.