Stuart Alderoty, Ripple’s general counsel, says the U.S. Securities and Exchange Commission (SEC) has acknowledged XRP’s use as fuel for cross-border payments.
The SEC’s acknowledgement of XRP’s utility in Ripple’s cross-border payment product, On-Demand Liquidity (ODL), can be found in the government agency’s recent lawsuit against the San Francisco-based company.
The section of the lawsuit in question reads,
“ODL involves a transaction in which a money transmitter in a sender’s jurisdiction converts fiat currency into XRP, transfers the XRP to a recipient’s jurisdiction, and converts the XRP into the fiat currency of that locale. Typically, instead of holding XRP directly, money transmitters who may use ODL would rely on market makers in the sender’s and recipient’s jurisdictions to trade in and out of XRP in about ninety seconds or less.”