Ripple switched ODL services for US customers from XRP to USDT

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As a long-term crypto investor with a keen interest in the XRP market, I find the recent developments surrounding Ripple’s on-demand liquidity (ODL) services and their switch from XRP to Tether’s USDT stablecoin quite intriguing.

I have learned that Ripple has made a change in the type of on-demand liquidity services it provides for its U.S. customers. Instead of using XRP as the underlying digital asset, they are now utilizing Tether’s stablecoin, USDT.

Last year’s court decision declared that institutional sales of XRP tokens breached U.S. securities regulations. As a result, Ripple has collaborated with entities situated beyond the United States to process XRP sales for on-demand liquidity (ODL) customers. American clients currently employ USDT as an intermediary currency for executing transactions.

As a researcher following up on your recent YouTube video, I wanted to share my findings regarding your observation about Ripple’s lack of On-Demand Liquidity (ODL) customers and their use of overseas subsidiaries. In response to your valid concern that a broad injunction could impact these business practices, I delved deeper into the available information.

— bill morgan (@Belisarius2020) April 26, 2024

Moon Lambo, a prominent XRP YouTuber, has shared that Monica Long, the President of Ripple, is placing great importance on prompt adherence to regulatory requirements, all the while guaranteeing smooth operation of On-Demand Liquidity (ODL) services for US clients.

As an analyst, I would interpret Monica Long’s statement to mean that Ripple Corporation, the American entity led by her, does not have any On-Demand Liquidity (ODL) customers directly. However, according to Ripple’s latest disclosure, their Singaporean subsidiary, Ripple Technology (Singapore) Pte. Ltd., does serve ODL clients using XRP.— Moon Lambo (@MoonLamboio) April 25, 2024

The YouTuber mentioned that Ripple’s Singapore affiliate has become the main buyer in XRP transactions, suggesting a move by Ripple to engage more with businesses beyond the United States as a way to overcome regulatory challenges.

As an analyst, I’ve uncovered new information regarding Ripple’s On-Demand Liquidity (ODL) service. Internally, they have instituted a minimum asset requirement of $5 million for clients utilizing this service. However, exceptions are granted to sophisticated organizations. This approach underscores Ripple’s dedication to safeguarding their end customers amidst the complex regulatory landscape.

Moon Lambo proposes that Over-the-Counter Digital Asset (ODL) transactions can carry on unfettered so long as they steer clear of U.S. legal territory.

$5 million, except for large financial institutions.

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2024-04-26 18:17