Ripple predicted banks' interest in XRP after a partial victory over SEC
US banks will want to use XRP in cross-border payments after a partial victory over the SEC
The company will begin talks with US financial institutions about using its On-Demand Liquidity (ODL) product
Ripple believes U.S. banks and other financial institutions in the country will start showing interest in using XRP in cross-border payments after a court ruled that the company's token is not a security, CNBC reported.
Ripple plans to begin talks in the third quarter of this year with U.S. financial firms about using its On-Demand Liquidity (ODL) product, which uses XRP for money transfers. This was revealed by Stuart Alderoti, Ripple's general counsel, in an interview with CNBC last week.
As a result of Ripple's long legal battle with the U.S. Securities Commission (SEC), the company has lost at least one customer and investor. Thus, MoneyGram, an American financial company engaged in operations on international financial markets, refused to cooperate with Ripple in March 2021.
Asked whether the decision means that US banks will revert to XRP to use its ODL product, Alderoti said he believes it does.
Ripple has more than 750 employees worldwide, about half of them based in the US. The company uses the XRP token as an intermediate currency in transfers from one fiat currency to another. Alderoti noted that Ripple's current operations will not be significantly impacted by the court's ruling on the SEC lawsuit, as the company's customers are predominantly outside the United States.
The U.S. court on July 13 did not recognize Ripple's XRP token as a security. At the same time, the status of the token has not been finally determined. Now the court proceedings can be continued or the case can be appealed.
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