Ripple Optimistic About US Banks Adopting XRP

Ripple is reportedly optimistic about the prospect of financial institutions being interested in using its On-Demand Liquidity (ODL) product, which utilizes XRP for money transfers, in the third quarter.

This news comes after the recent court ruling that determined that XRP, a cryptocurrency closely associated with the blockchain-based startup, isn’t necessarily a security, CNBC reported Monday (July 17).

Ripple General Counsel Stu Alderoty told the media outlet that the ruling, delivered by a New York judge, meant that banks in the U.S. would start showing interest in adopting XRP in cross-border payments. “I think the answer to that is yes,” Alderoty responded when asked about the ruling.

Ripple utilizes blockchain technology to send messages between banks similar to a blockchain-based alternative to Swift, according to the report.

XRP is a cryptocurrency that Ripple uses to send money all over the globe. This token serves as a ‘bridge’ currency between transfers from one currency to another — for example, U.S. dollars to Mexican pesos – to solve the problem of needing pre-funded accounts on the other side of a transfer to wait for the money to be processed, the report said. It is currently the fifth-largest cryptocurrency in circulation, with a market capitalization of $37.8 billion.

While the court’s ruling declared XRP was not a security, it also proclaimed that some token sales qualified as security transactions, per the report. Alderoty said this is a partial win for Ripple and stated that the company would analyze the decision and decide how it affects its business.

“We’ll study the the judge’s decision, we’ll look at our clients’ needs to look at the market, and see if there’s a situation here that complies with the four corners of what the judge found when it comes to institutions,” Alderoty said.

Ripple is focused on “enabling value to move at the speed of information,” Brendan Berry, head of payments products at Ripple, told PYMNTS in an interview in May.

Many of crypto’s most enduring real-world utility benefits are within the payments space, Berry said at the time.

“There’s been significant adoption and interest from businesses [around using crypto to facilitate instantaneous cross-border transactions] that is only continuing to accelerate,” Berry said.