Ripple is optimistic that American banks will develop an interest in utilizing their XRP cryptocurrency for international transactions. This bold assumption comes days after the company secured a favourable outcome in their legal dispute with the SEC.
In a significant ruling last week, a judge in New York made a radical decision stating that XRP, the cryptocurrency of Ripple, may not be considered a security. This ruling challenges some of the allegations made by the U.S. Securities and Exchange Commission (SEC) against Ripple.
XRP and the Banking Industry
Ripple has been actively advocating for the use of XRP as a bridge currency for banks and financial institutions. Major companies like Bank of America, American Express, and Santander have previously collaborated with Ripple for cross-border payments.
Ripple’s fast payment system enables real-time international settlements, facilitating the creation of real-time gross settlement systems for international trade.
In addition, Ripple’s high market cap, along with its use in international markets, make it a trustworthy token for buying fiat currency like USD. Therefore, banks can hold onto their XRP reserves and liquidate them quickly into USD and local currency reserves.
Ripple is Looking to Regain Lost Investors
Over the span of the lawsuit, Ripple’s business suffered, losing a major customer and partner, MoneyGram, in March 2021. Additionally, Tetragon, a U.K.-based investor, sold its stake back to Ripple after a failed attempt to sue the company.
Although Ripple’s partial victory was met with celebration by the crypto industry, Alderoty noted that it was not a complete win. The SEC has the option to appeal the decision, which experts also anticipate. However, former Department of Justice prosecutor and crypto venture investor Katie Haun expressed doubt about the likelihood of an appeal.
Banks adopting XRP as a medium of exchange will enhance the utility and acceptance of cryptocurrencies, thereby fostering wider adoption within the crypto community.
Following the mixed ruling, the price of XRP surged to $0.95, reaching its highest point in over a year, and its daily trading volume increased by 18X. Currently, XRP is trading at $0.74 with a 24-hour trading volume of $2,232,599,820.05.
If more banks embrace XRP for transactions, it will mark a new phase for cryptocurrencies and benefit Ripple. International banks should consider this monetary form as a potential future of banking.