Ripple to Use Stablecoin for US ODL Customers, Not XRP

Prominent digital asset researcher Anderson has made bold assertions regarding Ripple’s upcoming stablecoin, suggesting a connection with ODL.

According to a recent X post, Anderson said there are confirmations that Ripple will launch its stablecoin to cater to U.S.-based ODL (now Ripple Payment) customers due to its ongoing lawsuit with the Securities and Exchange Commission (SEC).

The media personality stated that Ripple might be launching the stablecoin for use in automated market maker (AMM) and institutional decentralized finance, as well as to facilitate ODL-related transactions within the United States.

So, confirmed that Ripple is using a stablecoin for ODL in the US currently (because of the lawsuit).

Perhaps Ripple launching their own USD stablecoin not just for AMM usage and institutional DeFi but also for doing ODL in the US.

— Anders 🏁🌏 (@X__Anderson) April 23, 2024

Ripple Moves to Navigate U.S. Regulatory Landscapes

Anderson’s remarks suggest that Ripple’s stablecoin move would align with its need to navigate the United States regulatory landscape. The company is currently embroiled in a legal tussle with the SEC.

Recall that the SEC charged Ripple with offering XRP as an unregistered security to retail and institutional clients in the U.S.

Although a New York federal court declared Ripple’s XRP retail sales as non-investment contracts, it found that the company violated securities laws by selling XRP to institutional clients.

The multi-year legal tussle has affected Ripple’s operations in the U.S., with the company now focusing on clients outside the country.

Ripple CEO Brad Garlinghouse said 95% of its clients do not reside in the U.S. Moreover, Ripple’s president, Monica Long, recently testified that after the SEC charged Ripple in December 2020, the company’s subsidiary in Singapore became the primary entity tasked with establishing new XRP sales contracts with ODL clients.

Long disclosed this in testimony attached to Ripple’s opposition to the SEC’s opening remedies brief, in which the commission requested nearly $2 billion in penalties.

Besides three licensed exceptions, Long emphasized that Ripple’s subsidiaries exclusively cater to ODL clients based outside the United States.

Ripple Reportedly Launching a Stablecoin to Cater to US ODL Customers

With the SEC lawsuit now focused on Ripple’s institutional XRP sales, the company has been looking for ways to continue offering ODL services to U.S. customers in a compliant manner.

This curiosity has led to speculations among top crypto stakeholders, including Anderson, that Ripple plans to launch its stablecoin to facilitate ODL transactions in the U.S.

Notably, popular crypto lawyer Fred Rispoli shared the same sentiment yesterday while analyzing Ripple’s opposition brief.

Rispoli pointed out that there are confirmations that Ripple’s upcoming stablecoin would allow U.S. customers to conduct ODL transactions without using XRP.

…carry its burden. Interestingly (sadly?) for US ODL, we have confirmation why Ripple decided to issue a stablecoin: to allow US-based clients to use ODL but not $XRP (p7, Ex. A, para 38). Also great to see Ripple shove SEC's statements about "losing" in its face (p15). 3/8

— Fred Rispoli (@freddyriz) April 23, 2024

Meanwhile, Ripple intends to launch the stablecoin on the XRP Ledger (XRPL) and Ethereum networks later this year. However, despite the commentaries from industry pundits, the San Francisco-based firm has not publicly confirmed the speculations.