The recent decision by Judge Analisa Torres that XRP is not a securities may have more favourable implications for Ripple Labs Inc., a blockchain payments startup. Stuart Alderoty, the company’s general counsel, made a rather upbeat prediction in an interview with CNBC when he said that banks in the United States would soon start utilising XRP coin for cross-border payments as a result of the case.
ODL push
Alderoty mentioned in the interview that the business would soon begin promoting its On-Demand Liquidity (ODL) solution to American banks starting in the third quarter. The ODL service, which has made it easier for the business to expand internationally, especially in the Asia-Pacific area, employs XRP as its native currency.
Due to regulatory uncertainties brought on by the Securities and Exchange Commission’s (SEC) lawsuit, the use of XRP as a cryptocurrency for payments in the United States was only on the table for debate at this point. Moneygram International, a long-time partner of Ripple, was compelled by the situation to sever ties with the company in early 2021.
Alderoty is now optimistic that the case will aid in bringing on board several new financial players.
In his words, “I think we’re hopeful that this decision would give financial institution customers or potential customers comfort to at least come in and start having the conversation about what problems they are experiencing in their business, real-world problems in terms of moving value across borders without incurring obscene fees.”
Are there more headwinds ahead?
What happens next in the Ripple v. SEC legal battle has generated a lot of discussion in light of the latest verdict. The clarity XRP has gained as a piece of code, powered by algorithms, is enough to fuel its stability in the short term, despite the SEC’s potential decision to go to trial and maybe appeal the most recent decision.
Even if the matter is not yet fully resolved, the business and its ecosystem are certain they are headed in the right direction.
