Not long ago, Ripple changed its On-Demand Liquidity (ODL) services for clients in the United States from using XRP to using Tether’s USDT stablecoin. Yesterday, a court said that selling XRP tokens to institutions was against U.S. securities rules. This change is because of that decision. Because of this, XRP has teamed up with companies outside of the U.S. to make it easier for ODL clients to buy XRP. U.S. customers now use USDT as a bridge exchange for their transactions.
A well-known expert on XRP, Moon Lambo, says that Monica Long, President of XRP, has stressed the company’s dedication to quickly following the law while maintaining continuous ODL services for its U.S. clients.
Ripple’s Singapore Subsidiary Emerges
Also, Ripple’s Singaporean subsidiary has become the main middleman for XRP sales. This shows a change in strategy toward non-U.S. entities to get around legal issues. Internal talks within XRP have also shown that ODL clients will now have to have at least $5 million in assets in order to be financially stable. Complex groups are exempt from this rule, which shows that Ripple is committed to protecting end users even when regulations are tough.
According to Lambo, ODL deals can go ahead without any problems as long as they stay out of U.S. courts. In reaction to the SEC’s order in 2021, XRP has taken steps to move all ODL customers in the U.S. from XRP to USDT, which is a middle-level currency. XRP had also previously required all ODL clients, except for big financial institutions, to keep assets worth at least $5 million.
