Bitrue Exchange is raising the security bar for XRP as an asset accessible on its platform through a game-changing insurance policy. According to insights shared by Flip The Chain, Bitrue maintains an insurance wallet that currently holds XRP.
Bitrue XRP Safety Net
According to the platform, this insurance wallet is a multisig one that currently holds as many as 25 million XRP coins.
At the current market valuation, this extra wallet’s holdings have a market valuation of $16,145,000 based on the current XRP price of $0.6458. The essence of this multisig wallet is to act as an extra safeguard against any form of mishap that might befall the trading platform.
Per Flip The Chain’s take, the wallet holds more XRP than the trading platform has in its hot wallets at any given time, should the user’s funds be exploited under defined circumstances.
The move to enhance holdings accountability came after the implosion of the Sam Bankman-Fried-led FTX Derivatives Exchange in November last year. This security approach is a version of the proof-of-reserve (PoR) update that many trading platforms in the digital currency ecosystem often publish every month.
Bitrue’s wallet can easily be inspected as contract addresses are published for anyone to view its online transactions.
XRP securing all potential backing
It is worth noting that the Bitrue insurance wallet update is a positive one for the broader XRP ecosystem as the digital currency needs all the bullish fundamentals it can secure after a tumultuous 2023 that saw the coin battle identity issues based on the lawsuit between the United States Securities and Exchange Commission (SEC) and blockchain payments firm, Ripple Labs Inc.
With new updates coming to XRP Ledger and the emergence of new sidechains and layer-2 scaling solutions like Evernode, XRP has what it takes to build bullish momentum in the coming year.