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Ripple Clarifies XRP Distribution

In a recent filing opposing the SEC’s motion for remedies and final judgment, Ripple Labs sheds light on its XRP distribution practices through On-Demand Liquidity (ODL), a key product utilizing XRP.

Ripple’s Singapore Subsidiary Manages XRP Sales for ODL

The filing, featuring testimony from Ripple President Monica Long, clarifies that Ripple itself, a US-based company, does not have any direct ODL customers. Instead, Ripple’s Singapore subsidiary handles XRP sales for ODL customers globally. This arrangement stems from a licensing waiver granted to the subsidiary by Singaporean authorities, allowing it to sell XRP under specific regulations.

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Following the SEC’s lawsuit against Ripple in December 2020, the Singapore subsidiary became the primary entity for establishing XRP sales contracts with new ODL customers. Long emphasizes that these contracts adhered to the licensing exemption until October 2023.

At that point, the subsidiary obtained a Major Payment Institution license from Singapore’s Monetary Authority, enabling it to offer Digital Payment Token Services, which now govern XRP sales for ODL.

Contracts Specify Jurisdiction and Limit Transferability

Long’s testimony further highlights key details within the XRP sales contracts between Ripple’s Singapore subsidiary and ODL customers. These agreements explicitly state that they are subject to Singaporean law and include a non-assignment clause.

This clause restricts the transfer of rights and obligations outlined in the contracts, ensuring a clear and controlled sales process.

Sophisticated Counterparties Outside the US

As a result of these measures, Ripple asserts that all ODL customers utilizing XRP, except three licensed US entities, are located outside the United States. These ODL customers are also considered “sophisticated counterparties,” signifying their understanding of the risks associated with cryptocurrency investments.

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Long explains that neither Ripple nor any of its subsidiaries engaged in the sale of XRP from the time of the SEC’s lawsuit filing in December 2020 until a US court ruling in July 2023. This clarifies Ripple’s position regarding XRP sales throughout the ongoing legal proceedings.


The SEC’s lawsuit against Ripple centered on the classification of XRP as a security, continues to unfold. Ripple’s recent filing provides a clearer picture of how XRP distribution through ODL operates, particularly through its Singapore subsidiary and the legal framework surrounding these transactions.

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Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.

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