Ripple legal officer expects US banks to adopt Ripple’s cross-border payment solution following the court ruling that XRP is not a security.
According to a Ripple executive, the recent landmark ruling declaring XRP a non-security paves the way for US banks and financial institutions to adopt Ripple’s solution for cross-border payments.
In an interview with CNBC, Stuart Alderoty, Ripple’s Chief Legal Officer, expressed confidence that American banks would return to Ripple’s On-Demand Liquidity (ODL) product.
Specifically, when asked if the US court ruling would lead to increased interest from banks, Alderoty replied, “I think the answer to that is yes.”
According to the lawyer, Ripple plans to initiate discussions with US-based financial institutions in the next quarter of the year regarding adopting its ODL solution, which leverages XRP for efficient money transfers.
The Ruling is Comfort to Banks
Furthermore, Alderoty emphasized that the court decision would provide comfort for financial institutions to engage in conversations about the challenges they face in cross-border value transfers, particularly regarding high fees.
The legal officer stated, “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.”
Alderoty also revealed that while most Ripple employees are from the United States, its primary business and revenue are from abroad.
Recall that the judge’s ruling also supported an argument by the Securities and Exchange Commission (SEC) that Ripple’s sale of XRP to institutional investors is considered a security offering.
Regarding the impact of this component on Ripple’s business, Alderoty clarified that since most of its customers are abroad, it would remain largely unaffected. He mentioned that Ripple would carefully analyze the judge’s decision, assess market needs, and ensure compliance with the judge’s findings concerning institutions.
Over 4K US Banks to Use Ripple Solution
Meanwhile, in a game-changing development, Twitter user WallStreetBulls highlighted that a staggering 4,096 commercial banks and 576 savings and loan associations, holding an astonishing $23.7 trillion in combined assets, are set to revolutionize cross-border settlements via Ripple ODL.
However, it is important to note that this is merely a projection from Wall Street Bulls, considering the number of commercial banks in the United States. The extent to which any US bank will leverage ODL remains to be seen.
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