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- Pittsburgh PNC Financial Services Group Inc. clutched headlines by announcing it is selling off roughly $17 billion stakes in BlackRock, the world’s largest asset manager.
- Moreover, this decision occurs at an uncertain time, as the bank is facing loan losses due to the coronavirus pandemic.
- Last year, the bank launched on Ripple’s blockchain payments platform RippleNet and became the first US Bank to proceed for cross border payments.
Ripple Partner PNC Financial Services Group Inc. clutched headlines by announcing it is selling off roughly $17 billion stakes in BlackRock, the world’s largest asset manager.
PNC Bank will exit BlackRock’s stake soon
However, the sale will end the 25 years of partnership between Pittsburgh Based PNC and BlackRock. The bank got business from Blackstone Group’s x-leader, Steve Schwarzman.
Moreover, this decision occurs at an uncertain time, as the bank is facing loan losses due to the coronavirus pandemic. Currently, all the banks are following stay-at-home philosophy brought on by the COVID-19 pandemic. This made borrowers difficult to repay their loans resulting in a drop of 28% profit in the first quarter of the year.
Presently, Pittsburgh Based PNC holds over 22% of BlackRock’s outstanding shares and will sell off the stake through a public secondary offering.
Bank’s decision may affect its partnership with Ripple
Besides this, a Ripple XRP enthusiast EMBIAGI shared this announcement over Twitter pointing out that PNC Bank Inc. is somewhere related to Ripple. This means that the step taken by the bank will somewhere affect its partnership with Ripple.
PNC = Ripple partner. @Kevin_Cage_ @XRP_OWL @BankXRP @xrp_stuart @HamEggsnSam @Paisan26849860 @CyPhlux @Fame21Moore @sentosumosaba @val5linx @MatthewLINY @digitalassetbuy @XrpMr @jungleincxrp https://t.co/kEDncVSSoT
— EMBIAGI (@EMBIAGI1) May 14, 2020
Last year, the bank launched on Ripple’s blockchain payments platform RippleNet and became the first US Bank to proceed for cross border payments.
The shocking headlines roared in the crypto market raising various predictions related to Ripple and PNC bank’s relation. Some crypto fans think that Ripple is trying to become a licensed bank or may offer lending loans.
While Ripple already has established itself a global portfolio. More than 200 banks across the world use Ripple’s network for payment and digital asset exchanges. The third-largest crypto coin is also in the top 100 list of cross border payment companies.
Hence, it may be expected that in the coming future Ripple may plan to become a leading bank.
