Anderson, a well-known digital asset researcher, has made bold claims suggesting that Ripple is preparing to launch a stablecoin specifically designed for U.S.-based On-Demand Liquidity (ODL) customers.
Ripple’s strategic move to introduce a stablecoin for U.S. ODL transactions demonstrates its commitment to maintaining a strong presence in the U.S. market, despite facing regulatory scrutiny.
Anderson, in a recent post on X, proposed a connection between Ripple’s forthcoming stablecoin and ODL. He suggested that Ripple plans to introduce its stablecoin, renamed as Ripple Payment, exclusively for U.S.-based ODL customers, amidst its ongoing legal battle with the Securities and Exchange Commission (SEC). Ripple has already expressed its intention to enter the $150 billion stablecoin market, recognizing a significant opportunity in the next decade.
Anderson speculated that Ripple’s stablecoin could support automated market maker (AMM) and institutional decentralized finance (DeFi) activities, as well as streamline ODL transactions within the United States.
Furthermore, Anderson’s comments imply that Ripple’s decision to launch a stablecoin aligns with its strategy to navigate regulatory challenges in the United States. Ripple is currently embroiled in a legal dispute with the SEC, facing allegations of offering XRP as an unregistered security to both retail and institutional investors in the U.S.
While a New York federal court ruled that Ripple’s XRP sales to retail customers did not constitute investment contracts, it concluded that the company violated securities regulations by selling XRP to institutional clients.
The protracted legal battle has affected Ripple’s operations in the U.S., leading the company to shift its focus to international clients. Ripple’s CEO, Brad Garlinghouse, revealed that approximately 95% of its clientele are located outside the U.S.
In addition, Ripple’s president, Monica Long, testified that following the SEC’s charges in December 2020, the company’s subsidiary in Singapore took the lead in establishing new XRP sales contracts with clients utilizing the On-Demand Liquidity (ODL) service.
As the SEC continues to scrutinize Ripple’s institutional XRP sales, the company is actively seeking ways to maintain its ODL services for U.S. clients within regulatory boundaries. This development has sparked discussions among influential figures in the crypto space, including Anderson, who speculate that Ripple intends to introduce its stablecoin to facilitate compliant ODL transactions in the U.S.
Crypto attorney Fred Rispoli echoed similar sentiments while examining Ripple’s recent legal filings. Rispoli pointed out indications suggesting that Ripple’s upcoming stablecoin could enable U.S. customers to engage in ODL transactions without relying on XRP.
In the meantime, Ripple plans to launch the stablecoin on both the XRP Ledger (XRPL) and Ethereum networks in the coming year. However, despite the discussions among industry experts, the San Francisco-based company has not officially confirmed these speculations.