Ripple CLO Optimistic Court Ruling Will Drive Bank Adoption of XRP: Report

Stu Alderoty, the Chief Legal Officer of Ripple Labs, has suggested that banks in the United States may consider utilizing XRP for cross-border transactions in the wake of a recent court ruling.

According to a CNBC report on July 17, Alderoty expressed confidence that U.S. banks and financial institutions could begin exploring the use of XRP for cross-border payments. This statement comes less than 24 hours after a federal judge ruled that XRP is not necessarily a security in Ripple’s ongoing case against the U.S. Securities and Exchange Commission (SEC).

Alderoty stated on July 14, “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, real-world problems in terms of moving value across borders without incurring obscene fees. Hopefully, this quarter will generate a lot of conversations in the United States with customers, and hopefully, some of those conversations will actually turn into real business.”

While Ripple’s legal battle with the SEC is not yet concluded, the ruling on XRP has already had a significant impact on the cryptocurrency market. Many U.S. exchanges have announced the re-enabling of XRP trading or are considering doing so for the first time in over two years, and lawmakers have renewed calls for regulatory clarity.

With the cloud of uncertainty regarding XRP’s classification as a security seemingly lifted, partnerships between Ripple and banks, which were previously affected by the SEC lawsuit, may regain momentum. Bank of America had been exploring opportunities with the blockchain firm in 2019, and American Express partnered with Ripple as early as 2017.

At the time of reporting, XRP was trading at approximately $0.74, representing a price increase of over 50% since the court ruling. The surge in price has propelled XRP to become the fourth-largest cryptocurrency by market capitalization.

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