Search
Search
US Banks Likely to Adopt $XRP Following Landmark Ripple Ruling

US Banks Likely to Adopt $XRP Following Landmark Ripple Ruling

0
0

71 Listen to this article In a significant development for the cryptocurrency industry, United States banks are showing renewed interest […]

Latest News

Listen to this article

In a significant development for the cryptocurrency industry, United States banks are showing renewed interest in Ripple’s cryptocurrency, $XRP, following a key ruling that determined XRP is not categorically a security. This paves the way for broader adoption in cross-border payments. Ripple, a San Francisco-based blockchain startup, anticipates entering discussions with American financial institutions in the upcoming third quarter about leveraging its On-Demand Liquidity (ODL) product, which employs XRP for financial transactions.

This revelation comes from Stu Alderoty, Ripple’s general counsel, during an interview with CNBC. A New York judge recently ruled that XRP does not inherently qualify as a security, challenging the U.S. Securities and Exchange Commission’s prolonged legal action against Ripple. The SEC’s contention was that Ripple and two of its leading executives executed an unlawful $1.3 billion offering through XRP sales.

Despite Ripple’s firm stance that XRP should be classified more as a commodity than a security, this legal entanglement impacted its operations. Notably, MoneyGram, a significant U.S. money transfer entity, terminated its alliance with Ripple in March 2021. Simultaneously, Tetragon, a U.K.-based investor formerly supporting Ripple, sold its stake back after an unsuccessful legal action to reclaim its investment.

When asked about the potential return of American banks to the ODL product, Alderoty expressed confidence, saying, “I think the answer to that is yes.” Ripple also offers a blockchain-driven alternative to traditional systems like Swift, aiding banks in intercommunication. Alderoty hopes the latest ruling will motivate more financial institutions to explore Ripple’s solutions, which promise efficient cross-border transactions without exorbitant fees.

Read Also:  XRP's Diminishing Public Interest Could Be A Silver Lining for Investors

Although most of Ripple’s clientele now hails from outside the U.S., the company remains heavily staffed stateside, employing around 450 of its 900 global workforce within the country. Currently, XRP ranks as the fifth-largest cryptocurrency, boasting a market cap of $37.8 billion. Ripple utilizes XRP as an intermediary currency for seamless conversions, such as from U.S. dollars to Mexican pesos, eliminating the need for pre-funded accounts and expediting transfers.

However, the judgment was not an unequivocal victory for Ripple. While the court determined XRP wasn’t a security, it noted some XRP sales did resemble securities transactions. Alderoty acknowledged this nuanced outcome and mentioned Ripple’s intent to thoroughly review the judgment to comprehend its broader implications.

Judge Analisa Torres found although we had completely disagreed with her that our earlier sales directly to institutional buyers had the attributes of a security and should have been registered,” Alderoty commented.

Regardless of the intricacies of the decision, Ripple’s current business trajectory remains primarily unaltered due to its significant international presence. The company intends to analyze the ruling closely and adapt as needed to cater to its clientele and market conditions.

Read Also:  XRP, Dogecoin, and Tradecurve Markets: Comparing 3 Low-Cost Cryptos
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Get Latest Updates

Latest News

Web Stories

Latest News

0
Would love your thoughts, please comment.x
()
x
Scroll to Top
Crypto Whale Splurges $10.4 Million on Meme Coin PEPE SOL Price Nearing Support as On-Chain Activity Dips for Solana Penguiana Meme Coin’s Presale Achieves Success, Raising 290 SOL Solana to Bitcoin Bridge, Zeus Network, Set for Debut in Q3 2024 DeFi Lending Leader Aave Unveils V4 Protocol Overhaul MicroStrategy (MSTR) Incurs Losses in Q1 After Digital Asset Impairment Takes Toll Upbit Emerges as Top Five Crypto Exchange, Posing Challenge to Binance, Coinbase Tether’s TON Blockchain Entry Reaches $60M: CEO Content SHIB News: 700M Tokens Burned, Shiba Inu Targets $0.00004 Polkadot Relay Chain Upgrade Plan and 10M DOT Prize Initiative TON Network Surpasses $140M TVL as Toncoin Price Skyrockets Bitcoin Falls Below $60,000 After Israel’s Strike on Iran Ragnarok Joins Web3 via Ronin and Gravity Collaboration Worldcoin Announces “Human Centric” Blockchain: World Chain Dubai Flood Spurs Blockchain Life 2024 Airdrop ZachXBT Reveals Frauds on Ethereum Layer-2 Networks Winklevoss Twins Invest $4.5M BTC in Bitcoin Soccer Club VeChain and UFC Unveil Tokenized Gloves Collaboration Web3 Credentials Platform Galxe Goes Live with Mainnet Launch El Salvador’s Newest Hilton Leverages Tokenized Bitcoin Debt