Ripple, the blockchain payments firm, is optimistic that U.S. banks and financial institutions will embrace its On-Demand Liquidity (ODL) product once again. This anticipation follows a mixed ruling in Ripple’s ongoing legal battle with the Securities and Exchange Commission (SEC).
Stu Alderoty, Ripple’s Chief Legal Officer, revealed that the company intends to initiate discussions with financial firms during the current quarter. In an interview with CNBC, Alderoty expressed confidence that American banks would resume using Ripple’s ODL product. “I think the answer to that is yes,” he stated.
Alderoty further explained that Ripple hopes the recent court decision would provide financial institutions, both existing and prospective, with the reassurance they need to engage in conversations about the challenges they face when it comes to cross-border payments and the exorbitant fees associated with them. The company aspires to address these pain points effectively.
Notably, Bank of America had already conducted a pilot of Ripple’s technology in 2019, but awaited the outcome of the legal case before exploring further collaboration. American Express and Santander also partnered with Ripple in 2017 for cross-border payment solutions. Currently, a majority of Ripple’s customers are situated outside the United States.
Ripple’s positive outlook stems from the belief that the legal ruling will instill confidence in financial institutions, prompting them to reconsider the adoption of Ripple’s ODL product. Consequently, Ripple plans to proactively engage with banks and financial firms to better understand the challenges they face and explore how its technology can provide viable solutions.
It remains to be seen how the legal ruling will impact Ripple’s relationship with American banks, but the company’s determination to re-engage with the financial sector signals a renewed opportunity for cross-border payment innovation.
