Ripple to use stablecoins instead of XRP for US ODL customers

Anderson, a well-known digital asset researcher, made a bold claim about Ripple’s upcoming stablecoin, suggesting a connection with ODL.

According to a recent article, Andresen said there is evidence that Ripple will launch its stablecoin to meet the needs of ODL (now Ripple Payment) customers in the United States due to its ongoing lawsuit with the United States Securities and Exchange Commission (SEC).

The media personality said Ripple may launch a stablecoin for use in automated market makers (AMMs) and institutional decentralized finance, as well as to facilitate ODL-related transactions within the United States.

Ripple grapples with U.S. regulatory environment

Anderson’s comments suggest that Ripple’s move to launch a stablecoin would be consistent with its need to address the U.S. regulatory environment. The company is currently embroiled in a legal battle with the SEC.

To recap, the SEC charged Ripple with offering unregistered XRP as a security to retail and institutional customers in the United States.

Although a New York federal court ruled that Ripple’s retail sales of XRP were not investment contracts, it found that the company violated securities laws by selling XRP to institutional clients.

The multi-year legal battle has affected Ripple's operations in the United States, and the company is now focusing on foreign customers.

Ripple CEO Brad Garlinghouse said 95%’s customers are not based in the United States. Additionally, Ripple’s president, Monica Long, recently testified in a deposition that the company’s Singapore subsidiary has become the primary entity responsible for establishing new XRP sales contracts with ODL customers since the SEC filed a lawsuit against Ripple in December 2020.

Long stressed that, with the exception of three licensed exceptions, Ripple’s subsidiary exclusively serves ODL clients located outside the United States.

Ripple to Launch Stablecoin to Meet Demand of US ODL Customers, Reportedly

With the SEC’s lawsuit now focused on Ripple’s institutional XRP sales, the company has been looking for ways to continue offering ODL services to U.S. customers in a regulatory-compliant manner.

This curiosity has led to speculation among top crypto stakeholders, including Andresen, that Ripple plans to launch a stablecoin to facilitate ODL trading in the United States.

It is worth noting that well-known crypto lawyer Fred Rispoli expressed the same point yesterday when analyzing Ripple’s objection letter.

Rispoli pointed to evidence that Ripple’s upcoming stablecoin will allow U.S. customers to trade ODL without using XRP.

Meanwhile, Ripple intends to launch the stablecoin on the XRP Ledger (XRPL) and Ethereum networks later this year. However, despite comments from industry experts, the San Francisco-based company has yet to publicly confirm the speculation.

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