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Coinbase Says XRP Utility in ODL Makes It Attractive to Financial Institutions
April 9, 2025
U.S.-based Coinbase highlights the utility of XRP in ODL as a significant factor that makes the coin attractive to financial institutions and payment providers.
Popular XRP community figure WrathOfKahneman called the public’s attention to this development while shedding light on some nuanced details in Coinbase’s filing with the U.S. CFTC to self-certify its listing of XRP futures contracts.
As previously reported, Coinbase submitted the filing on April 3, 2025, noting that it plans to list contracts for XRP futures on its derivatives trading platform later this month. The broader XRP community applauded the filing as a significant move that could clear the path for the potential launch of XRP spot ETFs.
XRP is Attractive to Financial Institutions
While many community members focused on the impact of Coinbase’s self-certified XRP futures contracts, WrathOfKahneman shed light on some details in the filing disclosure.
The exchange noted that one of XRP’s primary use cases revolves around its ability to facilitate cross-border settlements through RippleNet and On-Demand Liquidity (ODL).
It defines ODL as a service that leverages XRP as a bridge currency to facilitate real-time currency conversion. The exchange emphasizes that this utility helps reduce processing times and transaction costs for corporate payments.
Based on XRP’s ODL utility, Coinbase noted that the coin is attractive to financial institutions, remittance services, and payment providers seeking more efficient settlement methods.
Closer Look at Coinbase’s Filing
Reacting, WrathOfKahneman questions whether Coinbase’s description of XRP’s utility is merely boilerplate language or whether the exchange had insider insights.
Further, he noted that Coinbase mentioned RippleNet’s ODL even though Ripple disclosed in 2023 that the service had been superseded by its Crypto Liquidity solution. Coinbase’s use of outdated details prompted WrathOfKahneman to question the exchange’s source of information.
In the Weeds: So the Coinbase #XRPfutures filing, which Brad also R/T’d, is interesting in its disclosures.
> Coinbase claims XRP in ODL’s utility “has made XRP particularly attractive to FI’s, payment providers and corporate payments. Boilerplate or do they know something?
>…pic.twitter.com/woAvyQLZVW
— WrathofKahneman (@WKahneman) April 8, 2025
In the meantime, the CFTC is reviewing Coinbase’s request to self-certify the listing of its XRP futures contracts. Once the regulator approves the filing, the XRP Futures contracts will launch on Coinbase’s Derivatives platform on April 21.
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