• Ripple’s General Counsel, Stuart Alderoty, is hopeful that the recent win against SEC will encourage US banks to adopt XRP.
• Ripple offers On-Demand Liquidity (ODL) products that use XRP for cross-border payments.
• The ongoing legal dispute with the SEC has hindered Ripple’s ability to gain institutional interest in XRP.
Ripple Eyes US Bank Partnerships Post-SEC Victory
Ripple’s General Counsel, Stuart Alderoty, expressed optimism that their recent partial victory over the U.S Securities and Exchange Commission (SEC) may encourage U.S banks and other financial institutions to consider adopting XRP as a payment solution. He stated that this decision could provide potential customers „comfort to at least come in and start having the conversation“ about working with Ripple and using XRP for cross-border payments.
On-Demand Liquidity Solutions
Unlike other blockchain networks, Ripple offers On-Demand Liquidity (ODL) products which enable users to send real-time payments across borders by using its digital asset XRP as a bridge currency between two different currencies. This provides an efficient way for businesses to move money globally quickly and cost effectively than traditional methods of transferring funds across international borders like wire transfers or correspondent banking networks.
Legality Dispute With SEC
Ripple has been involved in an ongoing legal dispute with the SEC since December 2020 when it was sued for allegedly selling unregistered securities in connection with its sale of XRP tokens. Although Ripple won a partial victory earlier this month when a federal judge ruled that certain motions filed by the SEC were invalid, this legal battle has hindered its ability to attract large financial institutions due to regulatory uncertainty surrounding XRP’s status as a security or commodity.
Institutional Interest Growing?
The clarity provided by Ripple’s recent court win may now open doors for institutional interest in XRP as data from CoinMarketCap shows that trading volumes of XRP have surpassed Bitcoin’s volumes on some days throughout June 2021 — indicating growing demand from investors who are more comfortable investing in tokens whose legality isn’t up for debate anymore.