November has arrived, and Ripple has shocked the market, preparing what could be its largest monthly dump in seven years. The company, XRP Ledger (XRP)’s core developer and largest holder, reserved 470 million XRP to sell, worth $240 million.

Every month since 2017, Ripple unlocks 1 billion XRP and reserves part of it – usually 200 million XRP – to sell. In November, Ripple unlocked the 1 billion but for the first time in years, reserved above two times the usual amount.

This month’s escrows finished within Ripple (24) and Ripple (25) accounts, unlocking 500 million XRP each, as usual. Ripple (25) re-locked it all in escrows for 2028 within Ripple (12) and Ripple (13) accounts, as usual.

However, Ripple (24) re-locked only 30 million XRP within Ripple (12), unprecedentedly sending 470 million XRP to Ripple (1). This is the account used for the monthly dumps throughout the years. The company’s move raised concerns as such a large sell-off could drastically impact the token’s price, punishing XRP investors.

Ripple’s unlocks and largest XRP dumps history

Notably, Ripple’s previous largest dump occurred in June after reserving 200 million XRP and adding an extra 200 million from the idle account Ripple (35), as Finbold reported. The massive and unprecedented sell-off concluded on June 20, which we also covered, totaling 400 million XRP sold.

On this occasion, the XRP price dropped nearly 20% from June 1 to July 7, highlighting the nefarious financial effects. There are no records of such a high dump since 2017 when Ripple implemented the escrow system for more transparency.

Currently trading at $0.511, XRP has accumulated 18.70% losses year-to-date. Interestingly, Ripple sold 2.576 billion XRP in 2024 so far. The largest sales to date occurred in June (400 million), September (350 million), and July (300 million).

What’s next for XRP as Ripple could sell over 470 million tokens

Yet, in all these previous months, Ripple had only reserved the usual 200 million XRP from the escrow unlock. The additional selling pressure came from idle accounts throughout the month – differently from what we are observing now, in November.

Therefore, it is possible that Ripple could add even more selling pressure to the already record-high 470 million XRP. On that note, this month’s activity happens a few days before the U.S. Presidential Election. Chris Larsen, Ripple co-founder and CEO, disclosed a $10 million donation to Kamala Harris’s campaign, which came after the sales.

“It’s time for the Democrats to have a new approach to tech innovation, including crypto. I believe Kamala Harris will ensure that American technology dominates the world, which is why I’m donating $10M in XRP in support of her.”

– Chris Larsen

While Ripple has not disclosed any of these sales, in particular, the company has already disclosed its selling model on many occasions. According to sources, its XRP sales go through an On-Demand Liquidity (ODL) model, selling at market price to willing customers.

Moreover, the cryptocurrency community expects this election’s results to have a profound impact on the market. XRP investors and traders should carefully watch Ripple’s next moves depending on the outcome in the next few days.

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Billionaire Israel Englander, founder of Millennium Management, has significantly increased his stake in Nu Holdings (NYSE: NU), a move that aligns with the investment strategies of Warren Buffett and Cathie Wood.

These high-profile investors, each known for distinct approaches, have found common ground in Nu Holdings, a digital bank making waves in Latin America.

Nu Holdings, a Sao Paulo-based Brazillian neobank, has seen its stock surge by 73% in 2024, currently trading at $14.34.

Nu Holdings: A disruptor in digital banking

Nu’s appeal to investors lies in its groundbreaking approach to banking in historically underserved markets. Operating as a fully digital bank, Nu has streamlined financial services in Brazil, Colombia, and Mexico—regions long dominated by traditional banking behemoths.

With over 104.5 million customers, Nu has captured a significant market share, particularly in Brazil, where it serves more than half of the adult population. 

This remarkable growth is attributed to Nu’s intuitive platform and its ability to outpace legacy banks through technological innovation and cost efficiency.

By eliminating physical branches and leveraging technology, Nu has achieved operational excellence, translating into impressive financial results. 

In Q2 2024, the company reported a 65% year-over-year revenue increase and a 30% rise in average revenue per active customer.

“Our customer base grew to 105 million customers. The recent launch of checking accounts in Mexico and Colombia has ushered deposits of US$ 3.3 billion and US$ 220 million in those countries, respectively, and fuels our growth expectations in those operations.” – the bank said

Why Englander, Buffett, and Wood are betting big

Warren Buffett, through Berkshire Hathaway (NYSE: BRK.A), was an early believer in Nu. Buffett purchased his stake in the company for almost $750 million in 2021, around its initial public offering (IPO) phase.

Today, Berkshire holds 107 million shares, valued at approximately $1.7 billion. Despite being a small fraction of Berkshire’s massive portfolio, Buffett’s stake in Nu signals his confidence in its long-term potential.

On the other hand, Cathie Wood’s ARK Innovation (ARKK), through its Fintech Innovation ETF, has acquired 2.12 million shares, worth $30.3 million. These positions highlight a shared belief in Nu’s growth trajectory despite their otherwise divergent investment philosophies.

Nu’s profitability has also caught the eye of Millennium Management, which increased its stake by 371% in the last quarter.

The company has posted GAAP net income for six consecutive quarters, an impressive feat for a fintech in growth mode.

Revenue soared 65% year-over-year in Q2 2024, driven by a 30% increase in average revenue per active customer. Nu’s efficient model allows it to scale without a corresponding rise in costs, as evident from its expanding net interest margins, which climbed from 18.3% to 19.8%.

What’s Next: High expectations for Q3 earnings

All eyes are now on Nu’s Q3 earnings report, scheduled for release on November 13. Analysts project $2.9 billion in revenue, reflecting a 39% year-over-year increase, with earnings per share expected at $0.11.

The market will be watching closely for updates on Nu’s loan portfolio, delinquency ratios, and the broader economic outlook in its key markets.

Additionally, analysts maintain a cautiously optimistic outlook for Nu Holdings over the next 12 months, with the stock rated as a ‘buy’ on TradingView. However, the overall price target remains conservative, reflecting expectations of only modest upside potential.

That being said, Englander’s decision to copy-trade two of the most respected names in investing may turn out to be a brilliant move as Nu positions itself for even greater success in the rapidly evolving digital banking space.

This trio’s alignment on Nu Holdings shows the company’s potential to dominate the fintech landscape, making it a must-watch stock for growth-oriented investors.

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As part of Singapore’s Project Guardian which explores tokenization, Citi and Fidelity International have developed a solution that combines a tokenized money market fund (MMF) with an embedded digital FX swap.

Conventionally, if an institution outside of the United States wants to buy a US dollar MMF, that involves currency risks. They have to convert their local currency into the US dollar to buy the MMF, and when they’re ready to sell the MMF in the future, the exchange rate might have moved against them. So often when investing in a USD MMF, an institution would also execute an FX swap which switches to US dollars today, and converts back to local currency at a specific rate, say one month in the future when they plan to exit the MMF position. In conventional markets, these would be entirely separate transactions.

One target market for the tokenized version would be corporate treasurers that want to invest in USD MMFs to earn yield. But they also want to ensure they can exit the position at any time to use the funds for working capital. With this sort of solution, tokenization would make that possible in real time, which is not something available today.

Given tokenization uses smart contracts that support programmability and composability, Citi’s FX arm collaborated with Fidelity International for the project. Citi simulated the FX swap and Fidelity simulated the issuance and redemption of the MMF tokens, using interoperability protocols as they were on separate networks.

Tokenized money market fund potential

While the conventional US dollar money market fund sector is more than $6 trillion, this area is a promising sector in tokenization. McKinsey ($1.9 trillion) and Boston Consulting Group (BCG: $16 trillion) made very different predictions about the size of the tokenization market in 2030. But they both estimated tokenized funds would reach $400 billion by that date.

A key benefit is the ability to switch in and out of money market funds instantly rather than waiting for once a day issuance and redemption.

Franklin Templeton’s FOBXX and BlackRock’s BUIDL are leading the way on public blockchain, but other institutions are eagerly eyeing the opportunity. Last week there were two announcements out of Singapore. UBS is issuing tokenized USD MMF, and Libeara, a Standard Chartered tokenization startup, is facilitating an issuance in collaboration with Wellington Mangement and FundBridge Capital.

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