Brad Garlinghouse, CEO of Ripple, has recently suggested that US banks are on the verge of adopting XRP for international payments. A notable figure in the blockchain sector, Ben Armstrong, emphasised in a recent video that the adoption of XRP by US banks could be the “key to XRP’s success.”
Ripple has faced significant challenges over the past two years since the Securities and Exchange Commission (SEC) filed a lawsuit against the platform in 2020. The SEC accused Ripple and its executives of raising “over $1.3 billion through an unregistered, ongoing digital asset securities offering.”
Despite Ripple’s vision for global expansion and increased XRP adoption, legal challenges posed a substantial obstacle. However, in 2023, a landmark ruling by Judge Analisa Torres classified XRP as a non-security, providing what Ben Armstrong describes as “legal clarity” and signaling a potential path forward for Ripple.
Armstrong delved into the history of XRP, highlighting its evolution through various upgrades and updates. He discussed a “fatal flaw” in Ripple’s software that hindered banks from adopting XRP, as the previous software did not require users to hold XRPs, despite many banks utilising it for cross-border transactions. Ripple addressed this by introducing RippleNet and On-Demand Liquidity (ODL), replacing previous products. This strategic move aims to promote broader XRP adoption by necessitating the holding of XRP for utilising Ripple’s blockchain—a feature Armstrong sees as the “true value proposition of XRP.”
Armstrong predicts that news of wider XRP adoption may surface by Monday, in line with Garlinghouse’s hints. He emphasised that Ripple’s CEO, in realising the mission, has been “very strategic” in addressing the challenges and positioning XRP for broader acceptance.