Ripple aims to offer Ripple Payments (formerly ODL) services in the U.S. by leveraging Uphold for XRP sales, addressing regulatory concerns.
Key Takeaways:
- Ripple partners with Uphold for Ripple Payments in the US.
- Ripple Payments, formerly ODL, not yet available in the US.
- Uphold to provide XRP liquidity for ODL transactions in the US.
- This move aims to navigate US regulatory challenges.
Ripple, the blockchain-based payment solutions provider, is poised to make a significant expansion into the United States by offering its Ripple Payments (formerly known as On-Demand Liquidity or ODL) services. This strategic maneuver hinges on a newly forged partnership with Uphold, a US-based cryptocurrency exchange, which is expected to facilitate XRP sales within the country.
Big Brain Time By Ripple
The announcement garnered attention from the crypto community after being highlighted by the host of Digital Assets Daily, a popular crypto YouTube channel. It appears that this collaboration with Uphold serves as a pivotal solution to Ripple’s previous difficulties regarding the sale of Ripple Payments services in the US market.
Ripple Can Now Offer #Ripple Payments (ODL) Services in US 🇺🇸https://t.co/V9N5Y9mxnZ via Crypto Basic
— xrpnews.crypto® ⚡️🐺 (@xrp334) October 26, 2023
This development stems from Ripple’s recent strategic partnership with Uphold, which was announced just days ago. The partnership aims to leverage Uphold’s extensive trading infrastructure, boasting 30 trading venues, to bolster Ripple’s cross-border payment services.
It’s worth noting that despite Ripple offering Ripple Payments services to more than 55 countries, with a payout network spanning 70 markets, it has not been available in the United States. This is partly due to regulatory uncertainties following the July 13 judgment in the Ripple vs. SEC lawsuit, which raised questions about the status of ODL securities.
In response to these uncertainties, Ripple’s CTO, David Schwartz, stated that while they don’t currently offer ODL sales in the US, they could potentially do so, but XRP would come from a source other than Ripple.
The latest development suggests that Ripple intends to utilize Uphold as the source of XRP for ODL sales in the US. This strategic move could help Ripple avoid potential regulatory hurdles associated with US-based ODL sales.
Typically, in ODL (now Ripple Payments), crypto exchanges purchase XRP (often from Ripple) and provide it to financial institutions using the ODL service as a bridge currency for fiat conversion. Uphold, thanks to its partnership with Ripple, will play a key role in providing XRP liquidity for ODL transactions in the US, with a notable distinction being that Uphold will not acquire XRP tokens directly from Ripple.
Let’s Review
Ripple’s strategic collaboration with Uphold signals a major step forward in expanding its Ripple Payments services into the US market. This move not only showcases Ripple’s commitment to its vision of seamless cross-border payments but also its agility in navigating complex regulatory landscapes. Uphold’s role in providing XRP liquidity for ODL transactions is a key aspect of this partnership and is expected to play a crucial role in Ripple’s US market entry strategy.
