Ripple’s Chief Legal Officer “Expecting the use of ODL by US financial companies” Received the judgment of the XRP trial

Anticipating the spread of ODL in the United States

Ripple’s Chief Legal Officer, Stuart Arderoti, spoke to CNBC on the 14th about the U.S. District Court’s ruling in the Ripple case.

When asked if U.S. banks will use the international remittance solution “On-Demand Liquidity (ODL)” that uses the cryptocurrency (virtual currency) XRP as a result of this ruling, he replied, “I think I will use it. Yes.”

The Ripple trial, which began with a lawsuit by the U.S. Securities and Exchange Commission (SEC) in December 2020, was partially ruled by the U.S. District Court on the 13th. At that time, it was determined that XRP itself as a digital token was not a security. As a result, Ripple expects that dialogue with US financial companies on the use of ODL will begin in 3Q (July to September), and that some of them will lead to actual business.

connection: Summary of the “Ripple trial” filed by the US SEC (December 2020-July 23)

Arderoti said he hopes the ruling will provide reassurance to clients and potential clients of U.S. financial firms. At the very least, he hopes it will help start a conversation about what problems these companies are having in their businesses.

U.S. companies, too, must want to solve the problem of very high fees when moving value across borders, he said.

Arderoti also noted that the district court ruled that the sale of XRP to institutional investors was an unregistered security transaction. He said that Ripple’s customers are currently mainly outside the United States, so the decision will not affect its business at this time.

impact of the trial

The impact of the SEC lawsuit is not only that the virtual currency exchange has suspended XRP trading services, but also ripples into Ripple’s business. For example, Ripple announced in March 2021 that it had terminated its partnership with remittance giant MoneyGram.

The two companies have been working together since June 2019. MoneyGram also introduced ODL as part of its strategy, but explained that the partnership was terminated due to SEC lawsuits and unclear US cryptocurrency regulations.

connection: Ripple and MoneyGram to end strategic partnership

Ripple CTO David Schwartz said yesterday that there is still no clear answer as to whether the ODL-related XRP sale constitutes a security offering.

connection: Ripple’s CTO commented on the securities nature of ODL’s XRP sales

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