Expert Discovers True Motive Behind Ripple’s Plan to Introduce a Stablecoin in the United States

Legal expert and pro-XRP lawyer Fred Rispoli recently provided an explanation for Ripple’s upcoming launch of a stablecoin in the United States. In a recent discussion, Rispoli highlighted that the main reason behind Ripple’s decision is to enable U.S.-based customers to utilize its ODL solution, now known as Ripple Payments, for cross-border transactions. Instead of using XRP, these customers will have the option to use Ripple’s stablecoin.
Rispoli’s analysis came in response to Ripple’s recent filing in the SEC lawsuit. Ripple submitted its opposition to the SEC’s opening remedies-related brief, in which the commission sought fines and penalties amounting to almost $2 billion. Ripple argued in its filing that the SEC failed to demonstrate the necessity of a sanction or disgorgement, suggesting that the court should only impose a civil penalty of no more than $10 million.
Rispoli believes that Ripple is well-positioned to succeed in the remedies aspect of the lawsuit, but he also acknowledged the potential challenges that lie ahead. He noted that Ripple has adjusted its operations to comply with the court ruling and has conducted most of its ODL operations offshore, particularly in Singapore, where it received preliminary approval last year.
In order to offer ODL to U.S.-based customers, Ripple has decided to introduce a stablecoin, which will allow users in the region to use it instead of XRP for payments. It is worth noting that the majority of ODL transactions rely on XRP as a bridge asset for instant cross-border settlements. As reported earlier this year, 50% of all RippleNet transaction volume utilizes XRP in this manner.
On April 4, Ripple announced its plans to enter the $150 billion stablecoin market by launching its own stablecoin later this year. The stablecoin will be integrated into Ripple’s payments platform and will cater to institutional players and the broader decentralized finance (DeFi) sector. Initially, the stablecoin will be available on the XRP Ledger and Ethereum, but Ripple intends to support other blockchains in future updates. By integrating the stablecoin into its payments platform, U.S.-based ODL clients will also be able to utilize it for transactions.
Please note that this content is for informational purposes only and should not be considered as financial advice. The opinions expressed in this article are solely those of the author and do not represent the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.