Ripple Eyes Stablecoin for U.S. ODL Transactions Amid Legal Battles, XRP Excluded

• Renowned digital asset researcher Anderson’s bold claims suggest that Ripple is poised to launch a stablecoin tailored for U.S.-based On-Demand Liquidity (ODL) customers.
• Ripple’s strategic move to introduce a stablecoin for U.S. ODL transactions underscores its efforts to maintain its foothold in the U.S. market amidst regulatory scrutiny.

Renowned digital asset researcher Anderson has put forward assertive claims regarding Ripple’s forthcoming stablecoin, proposing a link with On-Demand Liquidity (ODL).

In a recent post on X, Anderson suggested that Ripple intends to introduce its stablecoin specifically for U.S.-based ODL customers, rebranded as Ripple Payment, amidst its ongoing legal battle with the Securities and Exchange Commission (SEC). As reported by Crypto News Flash, Ripple has already shared its intentions to enter the $150 billion stablecoin market citing a huge opportunity over the next decade.

Anderson speculated that Ripple could be unveiling the stablecoin to support automated market maker (AMM) and institutional decentralized finance (DeFi) activities, as well as to streamline ODL transactions within the United States.

So, confirmed that Ripple is using a stablecoin for ODL in the US currently (because of the lawsuit).

Perhaps Ripple launching their own USD stablecoin not just for AMM usage and institutional DeFi but also for doing ODL in the US.

— Anders (@X__Anderson) April 23, 2024

Anderson’s comments imply that Ripple’s decision to launch a stablecoin aligns with its strategy to navigate the regulatory challenges in the United States. Currently entangled in a legal dispute with the SEC, Ripple faces allegations of offering XRP as an unregistered security to both retail and institutional investors in the U.S.

While a New York federal court ruled that Ripple’s XRP sales to retail customers did not constitute investment contracts, it concluded that the company breached securities regulations by selling XRP to institutional clients.

Ripple Plans to Tap Into the US Market Again

The prolonged legal battle has impacted Ripple’s activities within the U.S., prompting the company to shift its focus to international clients. Ripple’s CEO, Brad Garlinghouse, revealed that a significant majority, approximately 95%, of its clientele are located outside the U.S.

Additionally, Ripple’s president, Monica Long, testified that following the SEC’s charges in December 2020, the company’s subsidiary in Singapore took the lead in establishing new XRP sales contracts with clients utilizing the On-Demand Liquidity (ODL) service.

Amidst the SEC’s scrutiny on Ripple’s institutional XRP sales, the company is actively seeking avenues to uphold its ODL services for U.S. clients within regulatory boundaries. This development has sparked discussions among prominent figures in the crypto space, such as Anderson, who speculate that Ripple intends to introduce its stablecoin to facilitate compliant ODL transactions in the U.S.

Additionally, noted crypto attorney Fred Rispoli echoed similar sentiments while examining Ripple’s recent legal filings. Rispoli highlighted indications suggesting that Ripple’s forthcoming stablecoin could enable U.S. customers to engage in ODL transactions without reliance on XRP.

…carry its burden. Interestingly (sadly?) for US ODL, we have confirmation why Ripple decided to issue a stablecoin: to allow US-based clients to use ODL but not $XRP (p7, Ex. A, para 38). Also great to see Ripple shove SEC's statements about "losing" in its face (p15). 3/8

— Fred Rispoli (@freddyriz) April 23, 2024

In the meantime, Ripple plans to unveil the stablecoin on both the XRP Ledger (XRPL) and Ethereum networks in the coming year. However, despite the discussions among industry experts, the San Francisco-headquartered company has yet to officially confirm these speculations.