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XRP’s Price Poised For Surge: Three Key Events That Could Propel XRP Price

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Zach Rector, a prominent member of the Ripple community, identified three significant events that may potentially increase the price of XRP. Given the Ripple community’s eagerness to see a price surge, Rector’s observations have sparked a debate within the community.

Rector’s first argument centers around the ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC). He posits that the US court’s refusal to grant the SEC permission to appeal the Ripple non-security status judgment could significantly impact XRP’s price. Typically, parties in a lawsuit can only contest court rulings once the case concludes. The SEC’s attempt to challenge this norm has sparked anticipation within the Ripple community. Ripple has also indicated its intention to file counter-appeals should the SEC’s bid be approved. For Ripple enthusiasts, denying the SEC’s request would mark a turning point for the digital asset.

XRP’s Potential Game-Changer

Rector’s second point revolves around adopting Ripple’s On-Demand Liquidity (ODL) product by a prominent US-based financial institution. Given the recent regulatory clarity surrounding Ripple, many within the community are hopeful that US banks will start integrating Ripple into their operations. This adoption could be a game-changer for Ripple’s value. It’s worth noting that Ripple’s previous XRP offerings to US institutions were seen as a significant stumbling block in the ongoing legal battle.

Lastly, Rector suggests that a settlement in Ripple’s legal battle with the SEC could ultimately catalyze XRP’s price surge. A settlement would signal the end of a protracted legal dispute over multiple years. Such a resolution would undoubtedly profoundly impact the Ripple market sentiment.

However, not everyone in the XRP community shares Rector’s optimism. One Ripple enthusiast, Chad, dismissed these events as mere ‘pump and dump’ opportunities. He argues that the utility of Ripple should be the primary driver of its price, not speculative events. Another user, Daren Black, concurred, emphasizing that true value would only materialize with increased utility and retail adoption, possibly after Bitcoin undergoes its halving.

As of the latest data, XRP is trading at 0.4708 and has experienced a 5.81% decline in the past 24 hours and a 6.12% drop over the past week. With XRP trading below the $0.5 mark, the community remains on edge, hoping that one of the mentioned events, or a combination of them, will reignite a rally akin to the surge witnessed after the victory ruling in XRP’s favor.

Related Reading: | Ripple Fights Back Against SEC Appeal Over XRP Security Status

Ripple’s XRP Sales To ODL Customers Challenge SEC’s Classification As Investment Contracts

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In a recent Twitter thread, attorney Bill Morgan shed light on a significant challenge faced by the U.S. Securities and Exchange Commission (SEC) in its ongoing case against Ripple. 

According to Morgan, the SEC’s argument that all XRP tokens represent Ripple’s investment contracts is undermined by the “small subset” of sales to On-Demand Liquidity (ODL) customers.

Morgan contends that these sales to ODL customers do not align with any aspect of the Howey test. He argues that since the SEC alleges that ODL customers immediately utilize the XRP tokens as a bridge asset, no investment is involved, no profit expectation, and no common enterprise. Instead, these customers are simply using XRP as a product.

This poses a significant problem for the SEC. If sales to ODL customers are considered exceptions, the SEC’s claim that all XRP tokens are securities or investment contracts loses its foundation. As all XRP tokens are fungible, any exceptions undermine the notion that the asset itself is a security.

Ripple: ODL Sales & The SEC’s Elusive Response

The SEC’s response to ODL sales has been elusive, with the regulatory body employing a series of disparate facts to obfuscate the issue. They argue that until the introduction of the ODL product in 2018, there was no use for XRP. 

They further claim that Ripple primarily did not sell XRP to ODL customers until mid-2020, instead compensating MoneyGram to use XRP for over 90% of ODL transactions.

The SEC also highlights the fact that ODL customers promptly resold any XRP they acquired from the market. Additionally, they note that Ripple repurchased the XRP it sold to protect its price, implying that this behavior does not align with typical commodity sales.

From the SEC’s perspective, ODL served as a mechanism relying on speculative investment-related trading of XRP. The SEC acknowledges some sales of XRP to ODL customers since mid-2020 but classifies them as a small subset. 

They view these sales as an indirect distribution of XRP into secondary markets, potentially involving statutory underwriters or evading registration requirements.

Curiously, the SEC does not apply the Howey test to any specific sales of XRP to ODL customers. Conversely, Ripple argues that the Howey test does not apply to any of its XRP sales.

Moreover, the SEC’s case faces additional challenges in the form of exceptions. These include XRP giveaways to early adopters and developers and charitable donations. 

The SEC does not claim that the charities were statutory underwriters, indicating that these XRP tokens were not considered securities.

The crux of the issue lies in the SEC’s assertion that all XRP tokens are fungible. However, once exceptions such as gifts, giveaways, and sales to ODL customers are recognized as not being securities or investment contracts, the argument that all other XRP tokens are securities becomes untenable. 

These exceptions cast doubt on the SEC’s claim that XRP is inherently a security, establishing it as nothing more than an asset.

As the case between the SEC and Ripple continues, these exceptions undermine the SEC’s attempt to categorize XRP as a security or investment contract, leaving it in a precarious stance to defend in court.

Related Reading | Tether’s Market Cap Surge Is Puzzling-Kaiko

XRP’s Removal From Ripple’s Liquidity Hub Was “Good Business Or Betrayal?”

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There has been a longstanding debate on XRP use in Ripple’s new Liquidity Hub. Attorney John E. Deaton, a vocal supporter of the token, recently sought a debate on whether Ripple’s choice to remove the asset was wise business or a betrayal.

In response to that, a senior community software engineer at the blockchain firm Neil Hartner took to Twitter to address some of the reasons.

According to Hartner, XRP is more suitable for ODL and not for the Liquidity Hub because the licensing requirements for these two platforms are different.

In the series of tweets, the engineer explained that in ODL, the sender and recipient directly settle payments, and Ripple serves as an intermediary to make the transaction possible. Thus, the firm is not a counterparty and XRP can be utilized in ODL without triggering any legal or regulatory problems.

However, Ripple is positioned in the center of the transaction in the Liquidity Hub, making the business a counterparty. This adds new statutory and regulatory standards that the token might not be able to meet. Ripple does not need XRP to function, Hartner claimed.

Following successful testing last year, the Ripple Liquidity Hub for businesses went live on April 13 to bridge the gap between cryptocurrencies and fiat.

Notably, there was no mention of the token during the product launch, drawing flak from the community because it was among the digital assets mentioned in the product’s pilot phase.

For context, On-Demand Liquidity [ODL], is a technology largely used for cross-border payments, and leverages XRP; hence, the asset’s omission from the Liquidity Hub came as a big surprise to the community.

XRP Community Not Satisfied With Ripple’s Move

Ripple, in response to the hue and cry from the XRP fans, updated its blog post on the Liquidity Hub with further details about the assets that are now available and why.

The blog post also added the following: “XRP will be evaluated along with other tokens for support within the product. We look forward to supporting it as it receives regulatory clarity in the U.S.”

While Hartner addressed the ODL portion, more questions remain unanswered, such as why XRP was dropped since 90% of Ripple Biz is conducted outside of the US or how long the token would be sidelined if it takes 3-5 more years of courts, etc.

Ripple’s XRP-Powered ODL Scores Twin Entries In These European Nations

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Ripple’s On-Demand Liquidity [ODL], which is powered by XRP has teamed up with Lemonway, a payment service with headquarters in Paris, to “improve its treasury payments operations,” according to an announcement made by the company.

The blockchain payment firm also announced a second new ODL customer, it’s first in Sweden. Swedish money transfer provider Xbaht enables money movement between Sweden and Thailand. 

This partnership will allow Xbaht to provide “instant and cost-effective retail remittances via ODL, supported by Tranglo, the cross-border payment hub based in Singapore.”

Likewise with Lemonway too, the deal, according to a press release from Ripple, “comes at a time when France has been showing itself to be forward-thinking when it comes to embracing the potential of crypto technology,”

This in turn will allow Lemonway to “drive operational efficiencies by eliminating the need for Lemonway to pre-fund accounts abroad, giving them the opportunity to use previously trapped pre-funded capital to grow and scale their business.”

Ripple’s ODL Grew Roughly 9x On YoY Basis

Sendi Young, the company’s managing director for Europe, stated the following:

We are delighted to be working with Lemonway and Xbaht, our first ODL customers in France and Sweden respectively. Since our inception ten years ago, Ripple has focused on using blockchain and crypto to build real use cases.

Ripple’s ODL had almost 9x YoY growth due to the substantial rise in volume, and Q2 2022 was a record quarter for on-demand liquidity. The Ripple remittance technology has expanded into additional countries, including Lithuania, in addition to signing and increasing agreements.

With 25 payout markets now supported by Ripple’s ODL, including Singapore, Malaysia, Poland, Indonesia, Thailand, and more, payments can be made. Lemonway and Xbaht join FINCI, FlashFX, FOMO Pay, iRemit, Novatti, Pyypl, SBI Remit, and other businesses in recognizing the advantages of ODL for their operations and clients.

Ripple would soon dish out more central bank digital currency [CBDC] projects in the coming weeks, as revealed by the firm’s advisor Antony Welfare handles CBDC Europe and global partnerships, TronWeekly reported.

The announcement came in response to a tweet by a crypto proponent Sentosumosaba who shared an article dated 17 June where Welfare spoke on Ripple’s progress on several CBDC pilot programs including the Royal Monetary Authority [RMA] of Bhutan and the Republic of Palau.

Ripple Hosts Japanese Mayor To Boost Web3 Adoption

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A top exec at Ripple, Emi Yoshikawa, welcomed the mayor of Japan’s Fukuoka city, Soichiro Takashima, to the blockchain firm’s headquarters along with a picture in the tweet saying,

“We welcomed Fukuoka City Mayor Soichiro Takashima and his team at Ripple HQ today! Fukuoka is a leading city in web3 initiatives in Japan. Today, Mayor Takashima of Fukuoka City and people from the international department visited the headquarters! I have high hopes for Fukuoka City, which is actively working on Web3.”

A few days ago, Japan’s largest money transfer provider SBI Remit announced that it will utilize RippleNet Technology to allow instant money transfers between Japan and Thailand.

“This makes it possible for 47,000 Thai nationals living in Japan to send money home faster. SBI Remit’s customers can use ATMs to instantly send money in JPY to a recipient’s SCB savings account in Thailand and receive funds in THB within seconds,” Ripple wrote in its PR.

In July 2021, the payment firm rolled out its first ODL service implementation in Japan, to expand its footprint in the Asia-Pacific [APAC], a key region for the firm. As per a report published in March 2022, Ripple saw a whopping 130% yearly basis growth in APAC Transactions.

The surge has been attributed to increased demand for quick settlements and immediate access to funds.

The launch comes at a time when the leading provider of enterprise blockchain and cryptocurrency solutions launched RippleNet’s On-Demand Liquidity [ODL] in Brazil with Travelex Bank, the first bank in Latin America to adopt the technology.

High Optimism Around Ripple Ecosystem

According to data analytics site Santiment, there has been notable whale activity, as well as high optimism, surrounding the Ripple ecosystem and the token XRP. Over 450 transactions carrying XRP worth over $100,000 each have been moving between wallets and exchanges in just 24 hours.

As disclosed by the market intelligence platform, the XRP network has tapped the largest amount of whale transactions in more than 3 months. The 13th of May was the last time this feat was achieved.

Additionally, sentiment is at its highest since April, the report read.

Ripple Partner Firm Releases Columbia’s Historic Land Registry On XRPL

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In a significant move, Ripple partner Peersyst Technology has successfully produced the first version of the National Land Registry to list the first adjudication resolution in Colombia on the XRP ledger.

Back in July, the Barcelona-based software development firm signed a deal with the Government of Colombia to record and register land registry rights in Colombia in an effort to revamp the laborious process and speed up property transactions.

The solution which took a year to finally materialized has been implemented for Colombia’s National Land Agency “AgenciaTierras” and is based on the XRP stamp, which allows digital assets to be registered on XRPL and their authenticity to be verified with a QR code.

The solution aims to register more than 100,000 adjudications in the near term to guarantee confidence for Colombians.

Besides being a long-standing Ripple partner, Peersyst Technology was also a recipient of the Wave 2 XRPL funding for a different NFT project.

As covered by TronWeekly, Ripple has entered into collaboration with Singapore-based major payments institution FOMO Pay, to strengthen multinational treasury flows using XRP-powered On-Demand Liquidity [ODL] and achieve affordable and instant settlement in EUR and USD globally.

While XRP’s price and trading volume have been in a downturn in Q2, its On-Demand Liquidity solution kept on expanding.

Ripple’s ODL Initiative Surged 9x YOY In Q2

According to Ripple’s Q2 2022 XRP Markets report, the ODL solution has seen its volume grow 9x year-over-year in the second quarter of the year, and the blockchain payment firm has sold a total of $408.9 million worth of the token in the quarter, compared to $273.27 million in Q1.

As stated in the publication, Q2 was a “record quarter” for On-Demand Liquidity as its volume kept on increasing and its customers continued to expand the solution’s use cases beyond traditional remittances or individual payments.

The XRP Ledger itself saw a total of 114.6 million transactions worth $58.3 billion via 126.5 billion XRP in volume. Additionally, the asset’s active address and dormant tokens have tapped over year highs, a study by Santiment noted.

At press time, XRP’s value stood at $0.37, up by 3% in the last 24 hours.

Ripple Partners With FOMO Pay To Bolster XRP-Powered ODL In Singapore

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Ripple has forged a collaboration with Singapore-based major payments institution FOMO Pay, to boost cross-border treasury flows using XRP powered On-Demand Liquidity [ODL] initiative and achieve affordable and instant settlement in EUR and USD globally.

The partnership will enable FOMO Pay to get 24/7 access to liquidity for EUR and USD, and makes it easy for the payment service provider to ramp up internal business cash flows, thus allowing them to reduce business costs and improve operations.

Liquidity on demand, or ODL, is essentially the process of buying and selling XRP cryptocurrency in originating and destination countries to create a liquid supply of liquidity.

RippleNet’s On-Demand Liquidity [ODL] service, leverages XRP as the digital asset to link two currencies, and facilitate cross-border payments at a low cost.

The blockchain firm also claimed that XRP-driven ODL eliminates the need for costly pre-funded destination accounts.

Besides Ripple Labs’ products for payment settlement, asset exchange, and remittance systems, it also provides services for international money transfers and security transfers through a network of banks and financial institutions.

Ripple’s ODL Is Touted To Solve Payment Bottlenecks

Speaking on the new launch, Brooks Entwistle, SVP and Managing Director at Ripple stated,

With the Asia Pacific region teeming with opportunities to solve existing silos and inefficiencies with payments, we’re seeing many forward-looking financial institutions clamoring for the next evolution of payment infrastructures – and notably based on crypto and blockchain technologies. This is why we are so excited to launch this crypto-enabled treasury management use case for ODL with innovative customers like FOMO Pay.

With the latest addition, FOMO Pay has joined other PSPs like Azimo, Novatti, FlashFX, iRemit, Tranglo, SBI Remit, and Pyyplin in integrating ODL services for their business and customers. The string of partnerships does not end here.

Just a day back, Ripple joined hands with the largest financial institution in the Middle East and Africa-Qatar National Bank [QNB] along with China Bank to deploy remittance services, TronWeekly reported.

Through RippleNet, the service will let users immediately transmit payments up to PHP 50,000 to any bank in the Philippines. It primarily serves Filipinos living in Qatar.

Ripple ventures into Japan with its ODL service

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Ripple made immense news this year, particularly due to its tiff with the Securities and Exchange Commission [SEC]. This did not hold back the platform from doing business. Ripple was seen expanding and Japan seemed to be its latest venture.

The SEC blatantly accused Ripple of selling unregistered securities. While none of the parties involved in the case decided to settle, the case persisted. The platform seemed to have figured out that the US could be a tough nut to crack, therefore it started laying focus on its On Demand Liquidity [ODL] services.

An array of platforms have begun to realize that the Asian market is a promising one. Hence several firms have been exploring Asian waters and Ripple has joined the list. The platform’s recent announcement revealed that it had rolled out a brand new ODL payment corridor between Japan and the Philippines.

Ripple to swim in Japanese waters

Japan’s SBI Remit, the remittance division of the SBI group would reportedly carry this out with the Philippines’s prominent cryptocurrency exchange, Coins.ph. Both the parties would reportedly employ XRP as the bridge currency. Users would then be able to convert the received XRP into the Filipino peso.

The announcement further read,

“With this scheme, SBI Remit will expand the lineup of remittances to the Philippines by adding recipients via Coins.ph as an expansion of the recipients of conventional remittances to the Philippines. In addition, in this scheme, cryptocurrency XRP is used as the bridge currency, and by utilizing the abundant liquidity of XRP possessed by SBI VC Trade, remittance costs such as pre-funding are reduced at SBI Remit, and international remittance business We believe that this will lead to the strengthening of competitiveness in Japan.”

In addition to this, SBI hopes to further expand its association with Ripple while focusing on remittance destination countries particularly Southeast Asia.

Ripple’s ODL services made advancements this year and emerged as a prominent service following the digitalization wave.

Ripple’s ODL Customers Can Now Seek Loans In XRP

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Ripple has undoubtedly been making headway in terms of global expansion and making partnerships. The payment protocol has been rolling out several platforms to boost its presence in the crypto-verse while benefitting the community. In more recent updates, Ripple announced the launch of its latest venture.

Loans In XRP

Giving a twist to the traditional process of garnering loans from the banks, Ripple seemed to be influenced by the DeFi space. Recently, Ripple announced the launch of the “Line of Credit” platform that was solely built to providing loans in XRP. The platform is reportedly still functioning on its beta version and is said to deliver loans to specifically its On-Demand Liquidity [ODL] customers.

Over the past few months, Ripple has been a great advocate of the world steering towards digitalization. However, in its latest blog post, the platform highlighted how the “limited access to working capital” has been a major hurdle that hinders the growth of a company. Through the Line of Credit, users of Ripple’s ODL platform would be able to purchase XRP on credit. Users that have borrowed XRP from Ripple would be charged “one fee”. While the exact fee is unclear, the platform suggested that it was lesser than other credit options that are available in the market.

Elaborating on its latest platform Ripple wrote,

“Ripple’s Line of Credit solves this problem for our customers by providing upfront access to capital for every market through one simple credit arrangement – simplifying access to financial solutions that accelerate business performance and scale.”

Ripple’s ODL platform has been lauded by many, however, it seems to be enduring a downfall lately as the liquidity of the ODL platform across several corridors has been faring low.  Ripple’s ODL market has ventured into Australia, the Philippines as well as Mexico and intends to enter the European region, Africa, Latin America, Middle-East as well as the Asia Pacific.

Ripple Informs Customers About Cloud Capabilities as COVID-19 Continues to Wreak Havoc

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The ongoing coronavirus pandemic has brought several industries and sectors to their knees, with workers being laid off at an alarming rate. Despite the flood of capital from world governments, it has become painfully clear that we need to come up with new ideas to sustain the economy in the future.

Ripple has recently taken to the internet to find ways in which industries will not be caught off guard the next time a global catastrophe occurs. Speaking about the RippleNet Cloud, Brad Garlinghouse led organizations to point out a myriad of advantages of online data storage.

Ripple claimed that COVID-19 made it painfully clear how cumbersome traditional processes are, with an added focus on streamlining future processes. Rapid time on the market and scale to meet increased consumer demand in real-time require lean infrastructure operations and elastic, cloud-based infrastructure. Though many advances have been made in the field of technology, Ripple was critical of the process of implementation.

According to the San Fransisco based cryptocurrency organization, many firms were hesitant when it came to integrating new technologies. The latest Ripple Insights blog said:

“Cloud technology and security has significantly improved, and there’s no longer a reason for customers’ financial data to live on aging legacy systems that are inflexible and expensive to support. If there’s one thing we can learn from the pandemic, it’s that we need improved solutions. The global economic crisis proves that full-scale cloud solutions are up to the task.”

Although RippleNet Cloud was not the first to hit the market, it has become an increasingly integral part of the COVID-19 era. A RippleNet Cloud customer can go live on RippleNet five weeks faster than the others. Those who are part of the Cloud can also avoid hardware requisition or staffing which inherently boosts transaction speeds.

On-Demand Liquidity or ODL has been the ace up Ripple sleeve with several of its partners taking advantage of the technology. ODL plays an important role when it comes to settlements on the Cloud. RippleNet Cloud customers also have the option of managing their portfolio and connections much more seamlessly using just one Application Program Interface [API]. Streamlining the internal process also gives Ripple the room to make Cloud solutions cheaper than ever before.

The latest release from Ripple wanted to inform customers about the additional benefits that can be obtained from the RippleNet Cloud. Since cloud solutions are easier to deploy, organizations are set to save a significant amount of capital. Only time will tell if companies choose to go down the new path or continue to stick with the beaten path.