In a recent interview with CNBC, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, expressed optimism about US 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
Aldrotti open Ripple plans to begin discussions with US-based financial firms next quarter regarding the adoption of its on-demand liquidity (ODL) product, which uses XRP as a bridge between fiat currencies for seamless cross-border payments.
When asked if the court’s latest ruling will generate increased interest from banks, Alderotti confidently replied, “I think the answer to that is yes.” “Hopefully this quarter will lead to a lot of conversations in the US with customers, and hopefully some of those conversations will turn into real business,” Alderotti added.
The court ruling declaring XRP unsafe is seen as a landmark, as it paves the way for wider acceptance and adoption of Ripple’s solution by banks and financial institutions. Al Deruti believes that this decision will provide convenience for financial institutions to engage in conversations about the challenges they face in cross-border value transfers, in particular the issue of high fees. He said:
I think we’re hoping that this decision gives financial institution clients or potential clients the comfort to at least step in and start having a conversation about the issues they’re having in their business in terms of moving value across borders without incurring outrageous fees.
The impact of the ruling on Ripple’s business
The impact of the court’s decision on Ripple’s business was also discussed. Alderoty explained that since most of Ripple’s customers are based outside of the US, the company’s business and core revenue will remain largely unaffected. However, fintech intends to carefully analyze the judge’s decision, assess market needs, and ensure compliance with the judge’s findings regarding institutions.
The potential arrival of US banks to use Ripple’s ODL and XRP product for cross-border payments has generated quite a bit of excitement within the crypto industry. Remarkably, Bank of America has been rumored to have been on the sidelines awaiting a resolution in the legal battle between the company and the SEC for several years. Ripple CEO Garlinghouse said at the Swell Conference in 2022 that the banking giant could enjoy significant benefits from using XRP and ODL, as reported by Bitcoinist.
At the time of publication, XRP is trading at $0.73 and is consolidating after being rejected at the 38.2% Fibonacci retracement level.
Featured image from Crypto Times, chart from TradingView.com