Cryptocurrency News

US banks accept Ripple’s XRP for global payments

Banks in the United States have at last reached a consensus to accept Ripple’s XRP for international payments, following an extensive and continuous legal dispute with the Securities and Exchange Commission (SEC). Brad Garlinghouse, the chief executive officer of Ripple, disclosed this information, thereby defining a new market for XRP in the banking sector.

XRP has evidently surmounted numerous obstacles since the SEC initiated legal proceedings in 2020. The accusations stated that the organization was involved in the sale of unlisted digital asset securities, for which it amassed over $1.3 billion in exchange. These legal concerns profoundly impacted XRP’s efforts to establish a global presence and achieve widespread cryptocurrency adoption.

A landmark order issued by Judge Analisa Torres in 2023 classified XRP as a non-security token and provided it with the opportunity to operate as a legitimate and transparent entity within the domain of digital tokens. This provided the opportunity for it to execute its subsequent objectives.

Regarding XRP, Ben Armstrong, a prominent figure in the blockchain industry, has commented on the significance of this ruling. He further asserts that this demonstrates Ripple’s meticulous adherence to all established regulations.

By implementing RippleNet and ODL, Ripple created a system in which XRP ownership is mandatory, thus associating the token’s utility with its adoption. This transition is regarded as a substantial advantage for XRP, augmenting its practicality and pertinence in the realm of international banking transactions. Although a number of financial institutions utilized Ripple’s software to process cross-border transactions, the lack of XRP holding requirements impeded its broader adoption.

According to Armstrong, these changes contribute to the realization of Ripple’s objective, which could potentially facilitate a greater embrace of XRP.

With great anticipation, the blockchain community, and XRP supporters in particular, awaits Garlinghouse’s forthcoming declaration concerning U.S. banks’ wider adoption of XRP. As a result, traditional banking mechanisms will be modified to incorporate blockchain technology.

Paul Jolin

Paul Jolin is an economist having experience in financial research. He joined CoinNewsSpan in 2017 and since then has been working with the team to offer best price analysis and review stories on the crypto space. He is optimistic about blockchain technology's use cases in terms of financial freedom. He also has experience as an independent trader.

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