In a recent interview with CNBC, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, expressed his optimism about American banks and financial institutions returning to using the XRP token for cross-border transactions. The positive outlook follows Ripple’s partial victory in its legal battle against the Securities and Exchange Commission (SEC).
US Banks Want To Use XRP
Alderoty revealed that Ripple plans to initiate discussions with U.S.-based financial firms in the coming quarter regarding the adoption of the On-Demand Liquidity (ODL) product, which utilizes XRP as a bridge between fiat currencies for seamless cross-border payments.
When asked if the recent court ruling would generate increased interest from banks, Alderoty confidently replied, “I think the answer to that is yes.” Alderoty added, “hopefully, this quarter will generate a lot of conversations in the United States with customers, and hopefully, some of those conversations will actually turn into a real business.”
The court ruling declaring XRP a non-security is seen as a significant milestone, as it paves the way for broader acceptance and adoption of Ripple’s solution by banks and financial institutions. Alderoty believes that this decision will provide comfort to financial institutions to engage in conversations about the challenges they face in cross-border value transfers, particularly the issue of high fees. He stated:
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 in terms of moving value across borders without incurring obscene fees.
Impact Of Judgment On The Ripple Business
The impact of the court decision on Ripple’s business was also discussed. Alderoty explained that since most of Ripple’s customers are based outside the U.S., the company’s primary business and revenue would remain largely unaffected. However, the fintech intends to carefully analyze the judge’s decision, assess market needs, and ensure compliance with the judge’s findings concerning institutions.
The potential arrival of American banks to using Ripple’s ODL product and XRP for cross-border payments has generated considerable excitement within the crypto industry. Remarkably, Bank Of America has been rumored to be on the sidelines waiting for a decision in the legal battle between the company and the US Securities and Exchange Commission for several years. Ripple CEO Garlinghouse said at the Swell conference in 2022 that the banking giant could have major advantages from using XRP and ODL, as Bitcoinist reported.
At press time, XRP traded at $0.73, seeing a consolidation after being rejected at the 38.2% Fibonacci retracement level.
Featured image from The Crypto Times, chart from TradingView.com