Ripple Restates XRP Role as Bridge Currency to Fiat in ODL After Regulatory Clarity

Ripple Restates XRP Role as Bridge Currency to Fiat in ODL After Regulatory Clarity

Time Stamp: August 16, 2023 5:47 AM
Source Node: 2215939

Ripple reiterates XRP as a bridge currency to fiat after securing regulatory clarity from the US court.

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Ripple recently took to X to restate its argument for offering XRP as a bridge currency to fiat. This move comes a month after securing regulatory clarity for XRP from the US court.

In particular, Ripple highlighted the merits of its payment solution for cross-border settlement in a recent tweet. The company mentioned speed, cost-saving, and liquidity as crucial components driving the course. 

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XRP in On-Demand Liquidity

The firm noted the role of XRP in addressing the arrowing challenges corporate businesses face concerning intercontinental transactions. 

According to the statement, institutions using Ripple’s On-Demand Liquidity (ODL) product leverage XRP as a bridge asset for diverse government-back money pairs. However, the US regulatory environment haunted XRP for its role in this course.

Since the US court has judged that XRP itself is a digital asset, Ripple now comes out bold to restate XRP’s use in ODL. Nonetheless, it is worth mentioning that Ripple’s sale of XRP to institutions is still a matter of debate in the US court. 

Meanwhile, the XRP community no longer sees that point as a significant hurdle. Bill Morgan, a pro-XRP attorney, reacted to Ripple’s recent tweet to shed light on the pending case. 

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Morgan highlighted that institutions using Ripple ODL after buying XRP did so for bridge currency transactions and related commercial reasons. The lawyer noted that the institutions could not have acquired XRP solely for the value of XRP to appreciate. 

This view is at variance with the opinion of the US regulator, which considers XRP’s role as a security contract in this case.

The lawyer ultimately believes Ripple will successfully appeal the pending court case. He remarked rhetorically:

“How can Ripple not appeal the finding XRP sales to ODL users are investment contracts.”

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