Crypto Eri has highlighted Ripple’s use of USDT as the bridge currency in ODL transactions.
According to Monica Long, Ripple switched to USDT following the 2021 lawsuit by the SEC.
Long noted that Ripple is determined to adhere to the current standards.
A renowned blockchain analyst identified as Crypto Eri on X has highlighted Ripple’s use of the USDT stablecoin as the bridge currency in ODL transactions. According to Crypto Eri, the implementation does not come as a surprise, citing Navin Gupta’s opinion that other digital assets would increasingly serve as Ripplenet bridges.
No surprises here. Navin Gupta was the first Rippler I heard on a YT interview who mentioned that other digital assets would increasingly serve as #Ripplenet bridges in the future. And as for those channels claiming $USDT is a scam… 😂 Oh, the twists of life.It's all about the… pic.twitter.com/0zlQ69pkWr
— 🌸Crypto Eri 🪝Carpe Diem (@sentosumosaba) April 23, 2024
Crypto Eri shared a post by Ripple’s President, Monica Long, highlighting some of Ripple’s practices since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the firm in 2021. The post stated that following the lawsuit and order by the SEC, Ripple Singapore subsidiaries became the primary entity for commitment to sell XRP contracts to new ODL customers, most of whom operate outside the U.S.
Importantly, Long noted that non-U.S. entities have exclusively been the contracting parties to XRP sales contracts to ODL customers since the twist of events. Hence, Ripple’s continued leverage of foreign subsidiaries licensed by local regulators to lawfully conduct such activities.
According to Long, following the SEC’s order in 2021, Ripple took steps to migrate each U.S.-based ODL customer from using XRP as the bridge currency in ODL to using USDT. She explained that the firm adopted BTC and other vetted stablecoins for U.S.-based flows unless otherwise approved.
In 2023, Ripple implemented a requirement that all ODL customers have a minimum of $5 million in assets unless they are sophisticated entities. Long clarified that the Legal Department will determine an entity’s sophistication status and that Ripple will continue adhering to the current standards.
The post The SEC Lawsuit Forced Ripple to Replace XRP With USDT As Bridge Currency appeared first on Coin Edition.
