San Francisco-based blockchain startup Ripple is optimistic that US banks and financial institutions will adopt its XRP cryptocurrency for cross-border payments. This follows a major decision that the token is not necessarily a security.

Ripple’s general counsel, Stu Alderoty, told CNBC that the company expects to begin discussions with US financial firms about the use of its On-Demand Liquidity (ODL) product in the third quarter of 2023. The ODL product uses XRP for transfers. of money, offering a faster and cheaper way. -Effective solution for cross-border transactions.

The US Securities and Exchange Commission (SEC) allegations against Ripple were rebutted by a New York court in a recent decision, which ruled that XRP is “not necessarily a security on its face.”

Three years have passed since Ripple and the SEC launched a legal dispute over claims that the firm and two of its executives made an unauthorized $1.3bn XRP offering. These accusations were rejected by Ripple, who said that XRP is more comparable to a commodity than a security.

While the ruling did not represent a complete victory for Ripple, as some sales of the token qualified as securities transactions, Alderoty expressed optimism. He said the decision could bring peace of mind to potential customers and stimulate discussions about solving real-world problems related to cross-border transfers of value and associated fees.

Ripple currently gets most of its business outside of the US.

On June 22, 2023, Ripple’s Singapore subsidiary, Ripple Markets APAC Pte Ltd, obtained approval in principle for the Monetary Authority of Singapore (MAS) Master Payments Institution License application.

This approval allowed Ripple to offer regulated digital payment token products and services within Singapore, while expanding adoption of its crypto-enabled On-Demand Liquidity (ODL) service.

In 2022, Ripple’s ODL service experienced remarkable growth globally, with most of this expansion being driven by its Singapore operations.

On July 8, 2023, Ripple’s CBDC team revealed an innovative use case: real estate tokenization. This method allows users to tokenize real estate assets and use them as loan collateral, which could increase access to real estate finance for more people. This will be achievable by using the secure, private and authoritative ledger known as the Ripple CBDC platform.

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