Yesterday, Ripple revealed in its court document submitted opposed to the SEC’s request for remedies and final judgment, that there have been major adjustments to its On-Demand Liquidity (ODL) operations within the US. The filing explained that instead of using XRP as a intermediary currency for its US-based ODL services, Ripple now employs Tether (USDT).
Why Ripple Chose USDT
In response to the SEC lawsuit judgment declaring institutional sales of XRP as subject to US security laws, our strategic shift has been to exclusively work with non-US entities for XRP sales contracts to ODL customers. The court document indicates that our US operations for ODL continue to use a currency other than XRP as an intermediary for transactions.
Monica Long, the President of Ripple, provided more information about a specific topic in an internal email. This detail was subsequently made public through a post on the social media site X by a well-known member of the XRP community named Crypto Eri (@sentosumosaba).
After receiving the Order, we swiftly made the transition for each American ODL customer from utilizing XRP as the intermediary currency in ODL to using USDT (or an alternative approved stablecoin like BTC). It is recommended that we stick with using USDT (or other authorized stablecoins) for transactions within the United States, unless given explicit permission by Legal.
This modification demonstrates the company’s commitment to aligning its services with US legal requirements while maintaining largely uninterrupted global operations. The email highlights the significance of our Singapore subsidiaries, which now manage the majority of new customer contracts for XRP sales via ODL outside the US. In essence, this approach allows us to operate within US regulations and effectively serve customers globally.
In simpler terms, Ripple’s subsidiaries based in Singapore have been the main entities entering into “Sell XRP” agreements with new clients using Ripple’s On-Demand Liquidity (ODL) service, most of whom are based outside the US. Following the Order, only non-US entities have been authorized to sign such contracts for the sale of XRP to ODL customers.
Ripple’s business model undergoes a major transformation, marked by a strategic shift in geography and operations. A large portion of Ripple’s On-Demand Liquidity (ODL) customers are based in the Asia-Pacific region, making use of the exchange corridors between non-US entities and countries. The granting of a license to Ripple Markets APAC Pte Ltd by the Monetary Authority of Singapore paved the way for this expansion, as Long clarified.
To service our ODL customers, we should continue to leverage our foreign subsidiaries who are licensed by local regulators to lawfully conduct such activity.
In addition, the recently disclosed court documents shed light on Ripple’s financial reliance and business tactics prior to the SEC lawsuit. Ripple’s accounting specialist, Anthony Bracco, determined that the company ran at a loss from April 1, 2014, up until December 22, 2020, without considering XRP sales revenue. This information underscores the significance of XRP sales to Ripple’s financial health during that timeframe.
According to the filing, Bracco determined the monetary expenses for Ripple’s operating costs and income taxes, amounting to [redacted]. By subtracting these expenses from Ripple’s Institutional Sales revenue in that time frame, which also totals [redacted], and additionally taking away the income taxes, totaling [redacted], Ripple experienced a loss of [redacted].
At press time, XRP traded at $0.549.
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- USD COP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- TON PREDICTION. TON cryptocurrency
- Strongest Magic Types In Fairy Tail
- AAVE PREDICTION. AAVE cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- ENA PREDICTION. ENA cryptocurrency
- USD ZAR PREDICTION
2024-04-24 09:11