In the wake of a recent partial victory in its ongoing legal battle against the US Securities and Exchange Commission (SEC), Ripple is expressing optimism about the potential adoption of its XRP cryptocurrency by US banks.
The favorable result has reinforced Ripple’s confidence in the market viability of XRP and its potential to revolutionize the banking industry.
Ripple’s bullish outlook suggests broader adoption of XRP in the US banking sector.
SEC allegations that XRP constitutes an unregistered security have brought Ripple under regulatory scrutiny for an extended period. Regulatory scrutiny had adverse effects on Ripple’s business, resulting in the loss of at least one customer and investor, including the termination of its partnership with US money transfer giant MoneyGram.
However, in a recent court ruling, Ripple won a partial victory, stating that XRP itself does not qualify as a security, paving the way for Ripple to dispel allegations of illegally selling $1.3 billion worth of XRP.
This legal win buoyed Ripple and fueled its belief that US banks and financial institutions will soon express interest in adopting XRP for faster and more cost-effective cross-border payments.
The partial victory has also contributed to a renewed sense of confidence among XRP investors and enthusiasts. Therefore, Ripple plans to start talks with US financial firms in the third quarter to explore the use of its On-Demand Liquidity (ODL) product, which leverages XRP for fast money transfers.
Ripple expects US banks to adopt ODL product after favorable ruling
Stu Alderoty, Ripple’s general counsel, expressed optimism in an interview with CNBC, stating that the recent ruling could prompt US banks to re-engage with Ripple and explore using its ODL product.
Alderoty expressed his hope that financial institutions, both existing and potential customers, would feel more comfortable engaging with Ripple and starting discussions about the challenges they face in transferring value across borders without incurring excessive fees.
Furthermore, he made it clear that these discussions would eventually lead to tangible business partnerships, allowing Ripple to address real-world challenges financial institutions face.
While Ripple’s positive outlook suggests possible adoption by US banks, it is important to note that regulatory uncertainties remain. The SEC’s case against Ripple is ongoing, and the final result will no doubt have broader implications for the cryptocurrency industry as a whole.
This post Ripple (XRP) News: US Banks Adopt Ripple Token After SEC Showdown
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