Ripple's US ODL service replaces XRP with USDT to cope with regulatory pressure

2024-04-26 21:14:14

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ChainCatcher news, Ripple has shifted from using XRP to Tether's USDT in its On-Demand Liquidity (ODL) service for U.S. customers in response to regulatory pressure.

According to the latest court documents, this shift is a response to last year's court ruling that found Ripple's sale of XRP tokens within the United States violated securities laws. Ripple is handling XRP sales through its Singapore subsidiary, indicating the company's strategic intent to shift towards non-U.S. entities to circumvent legal obstacles.

Additionally, Ripple has implemented minimum asset requirements for ODL customers, setting a $5 million threshold to ensure financial robustness, with exceptions granted to "other mature entities." Although Ripple itself does not have ODL customers, its subsidiary reportedly does, raising questions about whether the broad injunction sought by the SEC applies to non-U.S. entities.

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