- Ripple hopes the recent court decision will inspire US banks to use its ODL.
- XRP currently uses ODL for its first cross-border transactions.
- SEC’s former attorney John Reed Stark says the court decision could be short-lived.
Blockchain company Ripple believes its latest victory will draw U.S-based banks and institutions to the company. In an interview with CNBC, Ripple’s general counsel Stuart Alderoty mentioned that the firm plans to start talks with these companies in using its On-Demand Liquidity (ODL) to achieve faster cross-border transactions.
ODL, which XRP uses for transfers, makes instant transfer and receipt of funds possible. Alderoty further stated that the company hopes the court decision would make it easier for potential institutional investors and customers to comfortably interact with the company.
In a legal battle that lasted 3 years, Ripple last week secured a partial victory against the US Securities and Exchange Commission. Judge Analisa Torres ruled that XRP itself is “not necessarily a security on its face.” Instead, the court ruled that the token will be deemed a security when offered to institutional investors in the U.S.
After the decision, Brad Garlinghouse, the CEO of Ripple, tweeted that the business was certain it was in the right when the action was filed in 2020. The crypto community views this decision as a significant leap for the crypto market and Ripple who had lost several partnerships and market share.
However, former SEC official John Reed Stark does not appear pleased with the decision. In a LinkedIn analysis, the attorney described the decision as “troubling on multiple fronts.” According to him, the decision goes against investors’ protection risks. Instead, he argued, it exposes individual investors to risks.
While John Reed tagged the victory a temporary one, Ripple CEO is confident the chances of an appeal against the decision are slim. And should it come up, then he believes the court will reach a similar decision.
The price of XRP has skyrocketed since the decision. Likewise, the entire crypto market has also recorded positive performance since the decision. At the time of press, the token sits at $0.7461, according to data from CoinMarketCap.
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