Ripple Confident US Banks Will Use XRP for Money Transfers

Stu Alderoty, the general counsel at Ripple, recently said he expects US financial institutions will show interest in using XRP for cross-border money transfers. Last week, Ripple secured a partial legal win against the US Securities and Exchange Commission (SEC) after a court ruled that XRP offerings on secondary markets were not security sales.

Ripple Can Help Banks Solve Cross-Border Issues, General Counsel Says

Ripple said it is confident that banks and other financial service providers in the US will begin adopting XRP in cross-border transactions, General Counsel Stu Alderoty told CNBC. The optimistic comments come after a US court delivered a landmark ruling last week, determining that XRP was not necessarily a security.

The San Francisco-based blockchain solutions provider expects to open talks with US financial firms and offer them its On-Demand Liquidity (ODL) product in Q3 2023. Ripple’s ODL offering uses XRP as a native token for money transfers.

“I think we’re hopeful that this decision would give financial institution customers or potential customers comfort to at least come in and start having the conversation about what problems they are experiencing in their business, real-world problems in terms of moving value across borders without incurring obscene fees.”

– Alderoty said in an interview with CNBC.

Alderoty also said he hopes that the new quarter will create many new conversations with US customers, “and hopefully some of those conversations will actually turn into real business.” he added.

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Ripple’s Partial Victory Against the SEC

Alderoty’s remarks come just days after Ripple secured a partial legal triumph in its long-standing fight against the SEC over XRP’s status. To be more specific, the sale of XRP tokens through exchanges and algorithms did not constitute investment contracts, the US District Court of the Southern District of New York ruled on July 13. However, the judge said XRP sales by institutional investors did likely violate securities law.

The crypto token rallied sharply on the news. However, legal experts argued that the ruling still did not answer whether and when a digital asset should be designated as a security under US laws. XRP was trading at $0.73 at the time of writing, up more than 55% over the past week.

The SEC filed a lawsuit against Ripple Labs in December 2020, alleging that the company conducted an unregistered securities offering worth $1.3 billion by selling its digital asset XRP. The regulator claimed that Ripple and its executives violated federal securities laws by failing to register XRP as a security and misleading investors about the nature of the token.

Last month, Ripple obtained approval to offer digital asset services in Singapore, joining other crypto firms, including Circle and Crypto.com.

Do you agree with Alderoty’s views that Ripple will likely attract US banks and financial institutions with its legal win against the SEC? Let us know in the comments below.