Ripple CLO claims court ruling could encourage banks to adopt XRP: Report

A July 13 court ruling in Ripple's legal battle with the SEC suggested that XRP is not necessarily a security, a decision that has already made significant waves in the space.

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Stu Alderoty, the legal director of Ripple Labs, has reportedly said that US-based banks may turn to XRP for cross-border transactions following a recent court ruling.

According to a CNBC report on July 17, Alderoty expressed confidence that US banks and financial institutions could begin exploring XRP for use in cross-border payments. Ripple CLO reportedly made the statement less than 24 hours after a federal judge in the company's case against the U.S. Securities and Exchange Commission (SEC) ruled that the XRP token is not necessarily a title.

“I think we hope that this decision will reassure customers of financial institutions or potential customers to at least come in and start discussing the problems they are having in their business, real problems in terms of moving value through borders without incurring obscene fees,” Alderoty said on July 14. “Hopefully this quarter will generate many conversations in the United States with customers, and hopefully some of those conversations will turn into real business.

Although Ripple's legal battle with the SEC first initiated in December 2020 is not over yet, the XRP ruling has already made significant waves in the crypto space. Many US stock exchanges have