Ripple trusts the banks
Ripple, which operates XPR, is confident that more and more international banks and financial institutions will adapt to cryptocurrency. Confidence was boosted by a court ruling last week that raised questions about the SEC’s allegations.
Negotiations may come
The San Francisco-based company expects to begin talks with US financial firms soon about using its on-demand liquidity (ODL) product, which uses XRP to transfer funds, Ripple general counsel Stu Alderoty told CNBC last week.
Ripple has been in an ongoing battle with the SEC for the past three years. According to the agency’s indictment, two Ripple executives illegally bid $1.3 billion by selling XRP. Ripple has been totally affected by this. US money transfer giant MoneyGram ended its partnership with Ripple in March 2021. Meanwhile, Tetragon, the UK-based investor who previously backed Ripple, sold its stake to Ripple after a failed attempt to sue the company for its cash back.
The problem actually lies in the classification of XRP, since according to the company it is a commodity, while according to the oversight of the exchange it is a security. Finally, the turning point was brought about by a court ruling the week before, which challenged the SEC’s claim. Asked if the decision meant that US banks would revert to Ripple for using the ODL product, Aldrotti said, “I think the answer to that is yes.”
Ripple also uses the blockchain in its interbank messaging business, as a blockchain-based alternative to Swift.
“We hope that this decision will give reassurance to clients or potential clients of financial institutions to at least move forward and start talking about the problems they are having in their business,” Aldrotti told CNBC on Friday. “Hopefully this quarter will lead to a lot of conversations with customers in the US, and hopefully some of those conversations will turn into some really real business,” he added.
outside the United States
Ripple now gets most of its business from outside the US. Alderotti previously told CNBC that “all of their customers and revenue are from outside the US, although we still have a lot of staff inside the US,” he added.
Ripple has more than 900 employees worldwide, almost half of whom are based in the United States.
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