Ripple Plans to Utilize Stablecoin instead of XRP for American ODL Clients

Renowned digital asset researcher Anderson has made bold claims about Ripple’s upcoming stablecoin, suggesting a link to ODL.
In a recent X post, Anderson stated that there are indications that Ripple will introduce its stablecoin specifically for U.S.-based ODL (now Ripple Payment) customers as a result of the ongoing lawsuit with the Securities and Exchange Commission (SEC).
The media personality suggested that Ripple may launch the stablecoin for use in automated market maker (AMM) and institutional decentralized finance, as well as to facilitate ODL-related transactions within the United States.
Ripple’s Move to Navigate U.S. Regulatory Landscape
Anderson’s comments imply that Ripple’s decision to launch a stablecoin aligns with their need to navigate the regulatory landscape in the United States, given their ongoing legal battle with the SEC.
Recall that the SEC accused Ripple of offering XRP as an unregistered security to both retail and institutional clients in the U.S.
Although a New York federal court ruled that Ripple’s XRP retail sales were not investment contracts, it found that the company violated securities laws by selling XRP to institutional clients.
This legal battle, which has spanned several years, has affected Ripple’s operations in the U.S., prompting the company to shift its focus to clients outside the country.
Ripple CEO Brad Garlinghouse stated that 95% of their clients are located outside the U.S. Additionally, Ripple’s president, Monica Long, recently testified that following the SEC’s charges in December 2020, the company’s subsidiary in Singapore became the primary entity responsible for establishing new XRP sales contracts with ODL clients.
Long revealed this information in testimony attached to Ripple’s opposition to the SEC’s opening remedies brief, in which the commission requested almost $2 billion in penalties.
Apart from three licensed exceptions, Long emphasized that Ripple’s subsidiaries exclusively serve ODL clients located outside the United States.
Ripple Reportedly Launching Stablecoin to Support US ODL Customers
With the SEC lawsuit now focused on Ripple’s institutional XRP sales, the company has been exploring ways to continue offering ODL services to U.S. customers in a compliant manner.
This curiosity has sparked speculation among top crypto stakeholders, including Anderson, that Ripple plans to introduce its stablecoin to facilitate ODL transactions in the U.S.
Notably, prominent crypto lawyer Fred Rispoli expressed a similar sentiment while analyzing Ripple’s opposition brief.
Rispoli highlighted that there are indications that Ripple’s upcoming stablecoin will enable U.S. customers to conduct ODL transactions without the use of XRP.
Meanwhile, Ripple intends to launch the stablecoin on the XRP Ledger (XRPL) and Ethereum networks later this year. However, despite commentary from industry experts, the San Francisco-based company has not publicly confirmed these speculations.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may reflect the author’s personal views and do not represent the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.