Ripple hopes that many US banks and financial institutions will approach the company this quarter.
US-based payment protocol Ripple believes that XRP will now become an attraction to US banks and other financial institutions, following the recent development in its SEC legal fight. The company and the Securities Exchange Commission have been in court since December 2020, over the sale of unregistered XRP tokens. The legal action also included two of Ripple’s executives – Christian Larsen and Bradley Garlinghouse. The lingering lawsuit has resulted in different arguments before a judge gave the payment protocol a partial victory last week.
The matter between the Commission and Ripple took a new turn when a New York judge declared that XRP itself is “not necessarily a security on its face.” This partially offset the regulator’s claims against the firm over the past three years. While the SEC accused Ripple of not registering XRP as a security, the payment protocol argued that the token could not be considered a security and is more like a commodity. The team said XRP is used in its business to conduct cross-border transactions between banks and other financial institutions.
As a result of the lawsuit, Ripple experienced some setbacks in its businesses. However, Ripple is confident that it is about to see a positive turnaround as US banks seek to use its XRP cryptocurrency following the latest update in its fight with the SEC. The company said that the financial institution will start wanting to use its naive crypto asset for cross-border transactions.
Speaking to CNBC, Ripple’s general counsel Stu Alderoty said Ripple expects to begin discussing with financial firms in the US about using its On-Demand Liquidity (ODL) product, which utilizes XRP for money transfers. According to Alderoty, the talk will begin in the third quarter of 2023.
Hopes are high on what the news would bring in for Ripple after it has lost some of its business partners. Amid the heat of its legal battle with SEC, US financial services company MoneyGram terminated its business relationship with Ripple in March 2021. While the companies did not specify the reason for the farewell, many suggested that it was due to the SEC attack. At the time, Garlnghouse said that both parties are open to reconsidering the relationship in the future. Could now be the “future”? Is it possible that MoneyGram will be one of the US financial service providers that will start showing interest in Ripple after a landmark ruling on the SEC matter? The general counsel stated:
“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.”
In addition, Ripple hopes that many US banks and financial institutions will approach the company this quarter. Alderoty said that he hopes that such conversations will result in actual businesses.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.