Ripple Is Certain That U.S. Financial Institutions Will Use XRP for Financial Transactions
After a partial victory over the SEC last week, Ripple is optimistic that XRP will be used by US financial institutions for international payments.
Recently, Ripple’s general counsel Stu Alderoty said that he anticipates interest from US financial institutions in adopting XRP for international money transfers. The US Securities and Exchange Commission (SEC) had been pursuing legal action against Ripple, but a judge determined last week that XRP offers on secondary markets were not securities sales, giving Ripple a partial legal victory.
According to CNBC, Ripple General Counsel Stu Alderoty expressed optimism that US banks and other financial service providers will begin using XRP for international payments. After a US judge ruled this week that XRP wasn’t technically a security, people are feeling more upbeat.
The San Francisco-based blockchain solutions business plans to approach US financial institutions with an offer of its On-Demand Liquidity (ODL) product in the third quarter of 2023. The XRP coin is Ripple’s native token for ODL transactions.
“I think we’re hoping that this decision will give customers or potential customers of financial institutions the confidence to at least come in and start talking about the problems they’re having in their businesses, like moving money across borders without having to pay outrageous fees.”
According to Alderoty, “hopefully some of those conversations actually turn into real business” in the next quarter with new consumers in the United States. Furthermore, he mentioned.
The comments by Alderoty came just days after Ripple won a partial legal victory in its battle with the SEC over the validity of XRP. The US District Court for the Southern District of New York found on July 13 that the selling of XRP tokens through exchanges and algorithms did not constitute investment contracts. But the court ruled that selling XRP to institutional investors probably does violate securities legislation.
Following the report, the value of the cryptocurrency token skyrocketed. But lawyers said the court did not definitively say when or whether digital assets should be considered securities under US law.
In December 2020, the SEC filed a complaint against Ripple Labs, arguing that the sale of XRP amounted to a $1.3 billion unregistered securities offering. By neglecting to register XRP as a security and providing false information to investors, the regulator said that Ripple and its officials violated federal securities regulations.
Ripple, like other cryptocurrency businesses like Circle and Crypto.com, was recently granted permission to provide services related to digital assets in Singapore.
Also Read: A Former SEC Official Declares the Ripple Decision as ‘Difficult on Multiple Fronts’
