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Legal expert and pro-XRP lawyer Fred Rispoli recently attempted to explain why Ripple is planning to launch a dollar-backed stablecoin in the U.S. later this year.
In an X thread today, Attorney Rispoli stated that the major reason why Ripple is planning to roll out a stablecoin is to allow United States-based customers to utilize its ODL solution (now Ripple Payments) for cross-border payments.
Rispoli’s remark suggests that instead of XRP, U.S.-based customers can opt for Ripple’s upcoming stablecoin while conducting transactions via ODL.
Ripple is in Best Position to Win Remedies Stage of SEC Lawsuit
The expert made the assertion while analyzing Ripple’s latest filing in the SEC lawsuit. The Crypto Basic reported earlier that Ripple filed its highly anticipated opposition to the SEC’s opening remedies-related brief, in which the commission requested nearly $2 billion in fines and penalties.
In the latest filing, Ripple contended that the SEC did not show why a sanction or disgorgement is required, adding that the court should only impose a civil penalty not exceeding $10 million.
Reacting, Attorney Rispoli noted that Ripple is best positioned to win the remedies aspect of the lawsuit. However, he acknowledged that there are ominous signs that could pose a challenge to Ripple’s potential victory.
Ripple Stablecoin Will Serve US ODL Customers
According to the lawyer, Ripple changed its operations in accordance with the court ruling and has conducted most of its ODL operations offshore, specifically in Singapore, where it secured an in-principle approval last year.
In a bid to offer ODL to U.S.-based customers, Attorney Rispoli noted that Ripple decided to offer a stablecoin, allowing users in the region to use the stablecoin instead of XRP for payments.
…carry its burden. Interestingly (sadly?) for US ODL, we have confirmation why Ripple decided to issue a stablecoin: to allow US-based clients to use ODL but not $XRP (p7, Ex. A, para 38). Also great to see Ripple shove SEC's statements about "losing" in its face (p15). 3/8
— Fred Rispoli (@freddyriz) April 23, 2024
It bears mentioning that most ODL-related transactions leverage XRP as a bridge between two fiats for instant cross-border settlements. As reported earlier this year, 50% of all RippleNet transaction volume leverages XRP as a bridge asset via ODL.
For the uninitiated, on April 4, Ripple announced plans to venture into the $150 billion stablecoin market later this year by rolling out its own stablecoin. The upcoming stablecoin, which will be integrated into Ripple’s payments platform, will enable the company to cater to institutional players and the broader decentralized finance (DeFi) sector.
The stablecoin will first roll out on the XRP Ledger and Ethereum. However, Ripple plans to support other blockchains in future upgrades. With Ripple planning to integrate the stablecoin into its payments platform, U.S.-based ODL clients can also leverage it for payments.