Blockchain pioneer Ripple anticipates that U.S. banking institutions will begin to adopt XRP for cross-border transactions, following a recent ruling which clarified the token is not inherently a security.
Ripple's General Counsel, Stu Alderoty, revealed plans to engage U.S. financial institutions in discussions about integrating its On-Demand Liquidity (ODL) service, which employs XRP for remittances, in Q3.
This expectation follows a decision by a New York judge last week which argued that XRP, the digital asset often linked to Ripple, is not a security per se. This contradicted previous claims by the U.S. Securities and Exchange Commission (SEC) against Ripple.
For the past three years, Ripple has defended itself against SEC allegations that it, along with two executives, conducted an unauthorized securities offering via XRP sales amounting to $1.3 billion. Ripple has refuted these allegations, affirming that XRP is closer to a commodity than a security.
However, the judge's ruling did not entirely vindicate Ripple. The judge determined that while XRP is not a security, certain sales of the token could be classified as securities transactions. Ripple is now examining the impact of this decision on its business. Despite this, the company recognizes that the verdict will not affect its existing operations, as most of its clients are based outside the U.S.
This expectation follows a decision by a New York judge last week which argued that XRP, the digital asset often linked to Ripple, is not a security per se. This contradicted previous claims by the U.S. Securities and Exchange Commission (SEC) against Ripple.
For the past three years, Ripple has defended itself against SEC allegations that it, along with two executives, conducted an unauthorized securities offering via XRP sales amounting to $1.3 billion. Ripple has refuted these allegations, affirming that XRP is closer to a commodity than a security.
However, the judge's ruling did not entirely vindicate Ripple. The judge determined that while XRP is not a security, certain sales of the token could be classified as securities transactions. Ripple is now examining the impact of this decision on its business. Despite this, the company recognizes that the verdict will not affect its existing operations, as most of its clients are based outside the U.S.
