Ripple’s RippleNet Cloud Service Receives SOC 2 Certification from American Institute of CPAs
RippelNet has received significant security and privacy compliance milestone for its RippleNet Cloud service. This comes amid the company's battle with the SEC.
- While Ripple Labs continues to face significant pressure from a legal battle with the Securities and Exchange Commission (SEC), the company continues to mark wins in other areas.
- The Silicon Valley firm announced that it had received a significant auditing compliance certification for one of its other tools.
RippleNet Cloud Works Well So Far
According to an announcement, Ripple Labs confirmed that it had gotten a System and Organization Controls 2 (SOC 2) certification from the American Institute of Certified Public Accountants (AICPA) for RippleNet Cloud, its cloud-based institutional payment network.
Ripple’s statement explained that the certification was in recognition of its work in facilitating payments for its ever-expanding network of clients.
As Ripple explained, the rise of the coronavirus brought a significant demand for effective cloud-based, digital payment services. RippleNet Cloud, which launched in June 2020, has so far been able to onboard 40 banking institutions worldwide, providing quick and reliable cross-border payment solutions to them.
As the blockchain company explained, financial institutions have been steadily demanding RippleNet Cloud. The service allows them to deploy modern payment infrastructures in less than five weeks, much faster than what it would take with in-person deployment. Ripple added:
“In fact, RippleNet Cloud transaction volumes doubled every eight weeks in 2020 and reached an annualized run-rate of 1.8 million transactions, per Q4 volumes. More than half of all RippleNet transactions today flow through Cloud and now, customers can put further trust in RippleNet’s security capabilities.”
Plans In Case the SEC Shuts XRP Down
The SOC2 certification confers a service with high standards in terms of data security and privacy. As Ripple explained, the certification means that institutions looking to deploy the service into their infrastructure can now feel more confident about doing so. The Gemini Trust Foundation, a crypto holding company owned by the Winklevoss twins, also has the certification.
With a new compliance certification in the bag, RippleNet Cloud can now become another cornerstone of Ripple’s business, akin to that of the company’s on-demand liquidity (ODL) tool, which helped it to reach unicorn status back in 2019.
It also provides another avenue for Ripple to focus on, especially now that the fate of the XRP is in the balance. In December, the SEC sued Ripple Labs over the firm’s XRP token, which the agency calls a security. The financial watchdog also slammed Ripple for engaging in an unregistered securities offering in the asset’s 2013 Initial Coin Offering (ICO).
While Ripple is committed to fighting this suit in court, the prevalent opinion is that the SEC will emerge victorious in the case. If that happens, Ripple might be forced to leave the country and move the use of its token elsewhere.
For now, Japan might be the frontrunner for the company’s new base. Ripple already has a significant presence in the country, thanks in large part to its partnership with local financial services giant SBI Holdings. Earlier this week, the latter announced that it would add support for XRP to its crypto lending platform, SBI VC Trade.