SEC v. Ripple: Lawsuit gets tense while Ripple announces tokenization with XRP Ledger
2021 is seeing explosive demand for blockchain solutions and supply has become more capable. Competition is fierce within the space but the lawsuit with the SEC is keeping Ripple from advancing further.
Ripple Labs is entering the race for tokenization as the XRP Ledger continues to broaden its utility despite the lingering lawsuit with the SEC.
The blockchain company has taken steps this year to embark on the many uses cases for its distributed ledger technology, including NFTs (via Mintable) and central bank digital currencies (via a private version of XRPL).
Asset tokenization is one of the most exciting use cases for blockchain and Ripple wants to make sure its XRP will surf that wave.
“Tokenization is transforming how people buy, sell, track and manage assets – everything from art and real estate to intellectual property, equities and supply chain goods. In fact, the World Economic Forum projects 10% of the world’s GDP will be tokenized by 2027”, said Asheesh Birla, General Manager for RippleNet, on the firm’s blog.
“We’re expanding from a cross-border payments network to a platform providing tokenized services that will bring crypto capabilities to the enterprise and prepare them for a future where crypto is front and center. RippleNet was initially built to solve the challenges with speed, cost and transparency in cross-border payments for those that have been grossly underserved by the financial system at large.”
On-Demand Liquidity (ODL), eliminates the need for pre-funding–in cross-border payments by using XRP as a bridge between two currencies. The firm has recently introduced Line of Credit, an extension of ODL which allows RippleNet customers to source capital on-demand to initiate cross-border payments at scale using XRP. ODL customers can send XRP for cross-border payments directly through a crypto wallet.
Birla also stated that the Asia Pacific’s progressive crypto regulation has offered Ripple an incredible momentum, with Southeast Asia transactions growing by 10x in 2020, driven by existing RippleNet customers and new connections, such as Novatti and Tranglo.
2021 is seeing explosive demand for blockchain solutions and supply has become more capable. Competition is fierce within the space but the lawsuit with the SEC is keeping Ripple from advancing further.
Its plans to go public via initial public offering will remain tied up until the lawsuit is over. When will the lawsuit end? and Why is it taking so long? are very legitimate questions in such fast pacing industry.
That may also be why Ripple Labs and its co-founders are trying to schedule the key ex-SEC Director deposition for July 19, 2021 – one week from now – showing what can be perceived as hurry.
While the reason is unclear, it could be related to the recent letter from US Senator Elizabeth Warren to SEC Chair Gary Gensler. Requesting a response by July 28, the Senator implicitly offers the authority over digital assets to the SEC in a move that seems to outflank the CFTC. Attorney James K. Filan called it an “orchestrated powerplay“.
