The lawsuit’s blowback significantly impacted Ripple’s business, prompting the U.S. money transfer giant, MoneyGram, to terminate its partnership with Ripple in March 2021. Simultaneously, Tetragon, a U.K.-based investor, opted to sell its Ripple stake back to the company after a failed legal bid to cash out its investment.
Ripple’s Future Prospects and the Return of American Banks
Alderoty expressed belief that the Ripple lawsuit’s ruling will encourage U.S. banks to reconsider Ripple’s ODL product. Ripple’s blockchain-based business, which offers a Swift-like messaging service for banks, could provide institutions relief from exorbitant cross-border transaction fees.
“Hopefully this quarter will stimulate many discussions in the United States with customers, and hopefully some of these conversations will translate into real business,” Alderoty stated optimistically.
Currently, most of Ripple’s business is sourced outside of the U.S. Nonetheless, Ripple boasts a robust workforce of over 750 employees globally, with approximately half based within the U.S.
The Versatility of XRP and its “Bridge” Function
XRP, the cryptocurrency at the core of the Ripple lawsuit, serves as Ripple’s primary tool for moving money across borders. Currently ranked as the fifth-largest cryptocurrency with a market capitalization of $37.8 billion, XRP operates as a “bridge” currency, enabling rapid money transfers between different fiat currencies.
