Linqto COO says the company is working on a pilot program to help it sell tokenized private equity for XRP.
XRP has attracted significant interest following Judge Analisa Torres’ declaration that it is not a security. Notably, Linqto COO Joseph Endoso revealed how the company plans to utilize XRP in the upcoming Linqto 2.0.
Linqto’s Tokenized Private Equity to Utilize XRP for Payments
In an interview with Thinking Crypto’s Tony Edward, Endoso disclosed that Linqto is working on a tokenized private equity proof-of-concept, which will use XRP as the only payment method.
According to Endoso, the pilot project will see Linqto set up a new Special Purpose Vehicle (SPV). Notably, this SPV will be firewalled from the rest of Linqto’s other SPVs and main database.
After successfully setting up the SPV, Endoso said Linqto would add and tokenize new assets.
“We’re going to have that SPV custody of PolySign so that we can have an independent third-party custodian,” Endoso was quoted as saying.
Furthermore, Linqto’s COO said the company would offer the product to other broker-dealers who are based outside the United States. Per Endorso, these broker-dealers must use PolySign or other trusted digital assets custodians.
Interestingly, Endoso said the tokenized assets will be sold for XRP.
“We’re going to sell those tokenized-linked to SPV assets for XRP. We are going to get paid in XRP for those tokenized assets,” Endoso added.
Endoso noted that the pilot program will launch in the coming months. Per Endoso, these SPV transactions will clear and settle on PolySign’s Atomic blockchain, which is currently in testnet.
Endoso Comments on Ripple’s Victory
Meanwhile, Endoso commented on Ripple’s victory against the SEC regarding the declaration of XRP as a non-security. Reacting, Endoso described the development as a “monster win” for the leading blockchain company.
He said the recent court ruling is an 80% win for Ripple and a 20% loss for the company.
“The bottom line is that Judge [Torres] made it crystal clear in no uncertain terms, categorically stated that XRP itself, the token, is intrinsically not a security, and that is hugely important,” said Endoso.
He said the ruling was the exact opposite of what the SEC was arguing, adding that Ripple can use XRP without violating securities regulations.
Significance of Ripple’s Win
Interestingly, Endoso said the ruling will have two significant impacts from an investment standpoint. Firstly, he noted that the ruling would clear the path for banks to utilize Ripple’s On-Demand Liquidity (ODL).
It is worth noting that ODL leverages XRP as a bridge currency between two fiats for instant cross-border settlements.
According to Endoso, banks will utilize Ripple’s ODL because there will no longer be any regulation burden associated with buying and selling XRP while using the service. Per Endoso, this would bolster XRP demand, thus leading to a spike in the asset’s price.
Secondly, Linqto COO said Judge Torres’ decision would increase the intrinsic value of XRP in Ripple’s escrow account.
“Those two things are significant investment drivers for Ripple’s stock,” Endoso added.
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