Written by Hazel J. Greene, Senior Analyst

In a recent interview with CNBC, Ripple’s Chief Legal Officer, Stuart Alderoty, shared his positive outlook on American banks and financial institutions reconsidering the usage of XRP for cross-border transactions. This optimism follows Ripple’s recent legal win against the Securities and Exchange Commission (SEC).

Alderoty revealed that Ripple is gearing up to engage with U.S.-based financial firms in the upcoming quarter to discuss the adoption of their On-Demand Liquidity (ODL) product. ODL leverages the XRP token as a bridge between fiat currencies, enabling seamless cross-border payments.

When asked about the influence of the court ruling on banks’ interest, Alderoty confidently stated, “I think the answer to that is yes.” He further expressed hope that the current quarter holds promising conversations and potential business ventures with customers across the United States.

The court’s decision proclaiming XRP as a non-security is undoubtedly a significant milestone for Ripple. This ruling now sets the stage for wider acceptance and adoption of Ripple’s solutions by banks and financial institutions. Alderoty firmly believes this verdict will provide assurance to financial institutions when discussing their challenges in cross-border value transfers, with a particular emphasis on the issue of high fees. He expressed:

“I think we’re hopeful that this decision would give financial institution customers or potential customers comfort to at least come in and start having the conversation about what problems they are experiencing in their business in terms of moving value across borders without incurring obscene fees.”

While discussing the impact of the court decision on Ripple’s business, Alderoty highlighted that their primary clientele is primarily based outside of the United States. Hence, the ruling is expected to have a limited effect on the company’s revenue. However, Ripple remains committed to carefully analyzing the judgement, assessing market needs, and ensuring compliance with the court’s findings concerning institutions.

The potential adoption of Ripple’s ODL product and XRP by American banks has sparked significant excitement within the cryptocurrency industry. Notably, there have been rumors suggesting Bank of America has been eagerly watching the legal battle between Ripple and the SEC for years. Ripple CEO Brad Garlinghouse further emphasized the benefits that using XRP and ODL could offer major banking institutions during the Swell conference in 2022, highlighting the potential advantages for the banking giant.

As of press time, XRP is trading at $0.73 and experiencing consolidation after facing rejection near the 38.2% Fibonacci retracement level.

The recent legal triumph and Ripple’s determination to engage U.S. banks signify a potential turning point for the broader adoption of XRP and Ripple’s cross-border payment solutions. The future holds immense possibilities for reduced fees, increased efficiency, and improved global financial connectivity through the integration of Ripple’s technology.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.