Ripple, the well-known blockchain startup, recently won a big court victory over the Securities and Exchange Commission (SEC). This has had far-reaching implications for the entire digital business. A judge determined that XRP, the cryptocurrency, is not a security. This move has given Ripple further confidence that US banks and financial institutions would embrace XRP.
The decision acknowledged that XRP has characteristics more akin to a commodity than a security. This opens the door for Ripples’ aspirations to engage in conversations with American financial firms about using it. Ripple intends to employ XRP to create an On-Demand Liquidity (ODL) product. The ODL solution uses XRP to provide quick and low-cost cross-border money transfers.
Ripple’s general counsel is optimistic about the company’s future, stating that American institutions may return to Ripple for the use of its ODL product. Ripple believes that this historic decision will encourage financial institutions to experiment with XRP and see its benefits. Specifically when it comes to resolving real-world issues associated with costly cross-border transactions.
We must recall that Ripple did not win out completely, as transactions of XRP to institutional customers were considered unregistered securities sales. However, the corporation is unwavering in its commitment to navigate this element of the verdict. Notably, the majority of Ripple’s revenue comes from outside the United States, which mitigates the impact of the verdict on its operations.
NEWS:🚨🇺🇸 #Ripple's general counsel is optimistic about the company's future, stating that American institutions may return to Ripple for the use of its ODL product.
— Walletor (@walletorapp) July 19, 2023
XRP, the fifth-largest cryptocurrency, offers quick money transfers between fiat currencies. It avoids the requirement for pre-funded accounts on the receiving end of a transfer by acting as a “bridge” currency. This transforms standard payment mechanisms.
The business believes that this partial win would pique the interest of financial institutions. During the coming quarter, Ripple hopes to build conversations with consumers in the United States. They are hoping that these discussions may lead to actual business opportunities in the future.
Adoption of XRP by US banks and financial institutions might usher in a new era of cross-border transactions. This provides a speedier, more efficient, and cost-effective option for transporting value around the world.