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- Following a partial win in its SEC legal confrontation, Ripple sees an upswing in interest from major banks in its XRP cryptocurrency.
- Ripple’s On-Demand Liquidity (ODL) product, deploying XRP for money transfers, may witness a broader adoption following the ruling.
Ripple Foresees Increased Adoption after SEC Partial Victory
As per the latest news release by CNBC, Ripple, the blockchain pioneer, anticipates heightened interest in its XRP cryptocurrency from leading banks and financial institutions. This renewed optimism is triggered by a partial victory in its prolonged legal confrontation with the U.S. Securities and Exchange Commission (SEC), led by Gary Gensler.
Ready to discuss the prospective adoption of its On-Demand Liquidity (ODL) solution with US banks, Ripple is optimistic about the future. Ripple’s General Counsel, Stu Alderoty, was recently quoted in an interview saying,
“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.”
Legal Progress in Ripple’s Ongoing SEC Battle
A New York judge delivered a considerable verdict in favour of Ripple, declaring that XRP is not inherently a security, thereby challenging some of the SEC’s allegations. The company has been entangled in a legal dispute with the SEC over the illicit offering of $1.3 billion through XRP sales. Ripple maintained its stance that XRP is more akin to a commodity.
Possibility of Renewed Ties with Financial Titans
Ripple’s legal battle led to some significant setbacks, such as the termination of its partnership with MoneyGram, a U.S. money transfer titan, in March 2021. However, the recent ruling has sparked hope for revived ties with American banks. In the wake of this legal progress, Alderoty was optimistic about the return of banks to Ripple’s ODL product, stating,
“I think the answer to that is yes.”
Ripple’s Unique Solution to Monetary Transfers
Ripple employs its blockchain technology to facilitate communication between banks, offering an alternative to traditional systems like Swift. The company uses XRP as a bridge currency, enabling swift transfers between different fiat currencies and addressing issues like pre-funding accounts and transfer delays.
Although the ruling marked a significant victory for Ripple, it was not a complete triumph. The judge noted that some sales of the XRP token did qualify as securities transactions. This includes approximately $728.9 million in sales to partner institutions. Alderoty acknowledged this aspect of the ruling was not entirely favorable to Ripple, but assured that the company would thoroughly scrutinize the decision to understand its full impact.
