Monica Long, the president of Ripple, made a significant revelation regarding the company’s On-Demand Liquidity (ODL) partners. In Ripple’s latest filing, which aimed to oppose the SEC’s motion for remedies and entry for final judgment, Long stated that the company itself does not have any ODL partners. Her testimony carried weight due to her extensive experience with Ripple and her current role overseeing the company’s Compliance and Risk Management Committee.
Long specifically addressed Ripple’s XRP distributions and provided insights into the ongoing litigation. She disclosed that Ripple’s Singapore subsidiary had received authorization to sell XRP to ODL customers before the SEC filed its lawsuit. The subsidiary operated under a licensing waiver in accordance with Singapore regulations. After the lawsuit, the Singapore subsidiary became responsible for entering into XRP sales contracts with new ODL customers. These contracts were executed in compliance with Ripple’s licensing exemption until October 2023.
Ripple’s Singapore subsidiary obtained a Major Payment Institution license from the Monetary Authority of Singapore by that time. This license allowed the subsidiary to conduct Digital Payment Token Services and governs the sales of XRP to ODL customers.
Long emphasized that the contracts facilitating XRP sales from Ripple’s Singapore subsidiary to ODL customers explicitly state that they are subject to Singaporean law. Additionally, these contracts include a non-assignment clause, meaning that the rights and obligations outlined within the agreements cannot be transferred to another party.
After a thorough investigation, Long concluded that all ODL customers of any Ripple subsidiary using XRP in the ODL product are located outside the United States, with the exception of three licensed exceptions. These ODL customers are considered sophisticated counterparties. She clarified that Ripple, as a U.S.-based entity, does not have any ODL customers, as its subsidiary handles these sales.
Long also highlighted that neither Ripple nor any of its subsidiaries engaged in the sale of XRP from the SEC’s filing in December 2020 until the U.S. court’s decision in July 2023.
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