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American Banks May Tap XRP for Cross-Border Payments: Ripple CLO

Mon, 07/17/2023 - 10:33
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Godfrey Benjamin
Stuart Alderoty optimistic that US banks will soon start using XRP for cross-border transactions
American Banks May Tap XRP for Cross-Border Payments: Ripple CLO
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The recent ruling, in which Judge Analisa Torres declared that XRP is not a security, may prove to have more positive undertones for the blockchain payments company, Ripple Labs Inc. Speaking in an interview with CNBC, Stuart Alderoty, the company's general counsel shared a very optimistic projection as he noted that banks in the United States may soon start using XRP coin for cross-border payments following the lawsuit.

Ripple's Chief Lawyer Roasts SEC After Epic Victory

ODL push

In the interview, Alderoty noted that the company will soon start pitching its On-Demand Liquidity (ODL) service to U.S. banks beginning in the third quarter. The ODL service uses XRP as its native currency, and the service has helped the company carve out a growth path in different countries, particularly the Asia-Pacific region.

The use of XRP as a cryptocurrency for payments in the U.S. was only up for discussion now as the lawsuit by the Securities and Exchange Commission (SEC) resulted in regulatory uncertainty that pushed many away. The case forced Ripple's long-time partner, Moneygram International, to call off its business relationship with the company in early 2021.

Right now, Alderoty is confident that the lawsuit will help onboard many new financial players.

He said, "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."

Are there more headwinds ahead?

XRP Community Is a "Cult," Says Fox Business Anchor

The recent ruling has stirred a lot of debate regarding what comes next in the Ripple v. SEC legal tussle. While the SEC may choose to go to trial and possibly appeal the latest ruling, the clarity XRP has gotten as a piece of code, powered by algorithms, is enough to fuel its stability in the near term.

While the case is not completely over yet, the company and its ecosystem believe they are on the right path to winning completely.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.