In the wake of a recent partial victory in its ongoing legal battle against the U.S. Securities and Exchange Commission (SEC), Ripple is expressing optimism about the potential adoption of its XRP cryptocurrency by U.S. banks.
The favorable outcome has bolstered Ripple’s confidence in the market viability of XRP and its potential to revolutionize the banking industry.
Ripple’s Optimistic Outlook Suggests Wider Adoption for XRP in the U.S. Banking Sector
The SEC’s allegations that XRP constitutes unregistered security have put Ripple under regulatory scrutiny for an extended period. The regulatory scrutiny had adverse effects on Ripple’s business, resulting in the loss of at least one customer and investor, including the termination of its partnership with U.S. money transfer giant, MoneyGram.
However, in a recent court ruling, Ripple won a partial victory, stating that XRP itself does not qualify as a security, clearing the way for Ripple to dispel allegations of illegal selling of $1.3 billion worth of XRP.
This legal triumph has encouraged Ripple and fueled its belief that U.S. banks and financial institutions will soon express interest in adopting XRP for faster and more cost-effective cross-border payments.
The partial victory has also contributed to a renewed sense of confidence among XRP investors and enthusiasts. Therefore, Ripple plans to initiate discussions with American financial firms in the third quarter to explore the utilization of its On-Demand Liquidity (ODL) product, which leverages XRP for swift money transfers.
Ripple Expects U.S. Banks to Embrace ODL Product Following Favorable Ruling
Stu Alderoty, Ripple’s general counsel, expressed optimism in an interview with CNBC, stating that the recent ruling could potentially lead American banks to reengage with Ripple and explore the use of its ODL product.
Alderoty expressed hope that financial institutions, both existing and potential customers, would feel more comfortable engaging with Ripple and initiating discussions about the challenges they face in cross-border value transfer without incurring excessive fees.
Furthermore, he made it clear that these discussions would eventually lead to tangible business partnerships, enabling Ripple to address the real-world challenges faced by financial institutions.
While Ripple’s positive outlook suggests potential adoption by U.S. banks, it is important to note that regulatory uncertainties still exist. The SEC’s case against Ripple is ongoing, and the final outcome will undoubtedly have broader implications for the cryptocurrency industry as a whole.
