- Ripple might utilize the domestic exchange Uphold to conduct XRP sales for Ripple Payments (formerly known as ODL) services in the United States.
- While the news of this partnership created some excitement within the XRP community, many were unsure of the potential implications.
- A recent comment from Digital Assets Daily’s host highlights Ripple’s intention to use Uphold as an XRP source for domestic ODL sales in the US.
Ripple’s latest strategic partnership may be an important solution for its services in the USA: Ripple has taken action for ODL services!
Ripple Seeks Solutions to Provide Services in the US
Ripple could potentially use the domestic exchange Uphold for XRP sales to offer Ripple Payments (formerly ODL) services in the United States. The host of Digital Assets Daily brought attention to this tactic in a recent post. The comments were based on a remark by an XRP community member implying that this strategic partnership aimed to address the issue of Ripple Payments sales in the US.
As a reminder, Ripple recently entered into a strategic partnership with Uphold. According to the announcement, this partnership will enable Ripple to utilize Uphold’s trading infrastructure, consisting of 30 trading platforms, to strengthen its cross-border payment service.
While the news of the partnership generated some excitement within the XRP community, many are aiming to highlight its potential significance. Ripple is not offering ODL (formerly On-Demand Liquidity) services in the US currently because Ripple has a payment network covering 70 markets, providing these services to more than 55 countries.
On the other hand, following the July 13th decision regarding the Ripple vs. SEC lawsuit, XRP community figure Leonidas questioned whether ODL sales involved securities. As a reminder, the court ruled that Ripple’s past XRP sales to institutional investors violated securities laws.
In response to Leonidas’ question, Ripple’s CTO David Schwartz explained that the company is still looking for a solution. He clarified that the company currently does not offer ODL sales in the US, but if desired, Ripple could provide XRP for ODL in the US from a different source.
Seeking a Solution to the Issue…
The recent comment from the host of Digital Assets Daily emphasizes Ripple’s intention to use Uphold as an XRP source for ODL sales in the US. By employing this strategy, the company would likely mitigate any regulatory actions concerning ODL sales in the US.
Particularly notable is the role of cryptocurrency exchanges in ODL (now Ripple Payments). These exchanges usually purchase XRP (often from Ripple) and sell these XRP tokens to financial institutions using the ODL service. These financial institutions then utilize XRP as an intermediary currency to convert from one fiat currency to another.
As a result of the Ripple-Uphold partnership, Uphold will act as one of these exchanges. The platform will not purchase XRP tokens from Ripple, marking the difference.
Uphold confirmed this after the partnership. A member of the XRP community inquired whether Uphold would utilize its customers’ XRP tokens for providing liquidity. Uphold, which currently holds around $1.27 billion worth of XRP reflecting its customers’ accounts, emphasized that they would not use customers’ XRP to provide liquidity. The platform stated that they would purchase XRP and other assets from the open market to facilitate these ODL sales.
