Ripple, a blockchain company that manages the XRP cryptocurrency, expresses optimism that US banks will begin adopting XRP for cross-border transfer operations. Talks are expected to commence in the third quarter of this year.
This sentiment is further supported by the historic ruling in favor of Ripple in its dispute with the US Securities and Exchange Commission (SEC). The ruling determined that XRP is not a security in and of itself, contradicting the claims made by the SEC. Although the ruling wasn’t a complete victory for Ripple, it has paved the way for the company to resume its dealings with US banks and other financial institutions.
It is worth noting that Ripple also utilizes blockchain technology in its operations to facilitate messaging between banks, serving as an alternative to the Swift system. Ripple officials hope that the ruling will provide relief for customers and financial institutions in the United States, encouraging them to initiate discussions regarding their cross-border value transfer issues without incurring high fees.
It should be mentioned that Ripple still heavily relies on its operations outside of the United States, but the company will assess the decision and analyze its impact on its business. XRP is the fifth-largest digital currency in terms of market capitalization and is used as a “bridge” currency for quick and location-independent money transfers.
These developments are expected to be positive for Ripple and the blockchain industry as a whole. The adoption of the digital currency by US banks may foster increased confidence in this technology and facilitate cross-border financial transactions. The utilization of XRP by US banks could be a significant step towards promoting the adoption of the technology and driving advancements in the blockchain market in the future.