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.
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.
Read Also: Ripple CTO Clarifies Potential Impact of AMM On XRP Price Volatility
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.
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.
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.
Read Also: Japan’s Prominent Financial Giant SBI Group Set to Launch Shiba Inu (SHIB) Trading on SBI VC Trade
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.
Follow us on Twitter, Facebook, Telegram, and Google News
Are you wondering which cryptocurrency will dominate the market in 2024? As the crypto space…
EGRAG CRYPTO (@egragcrypto), a well-known cryptocurrency analyst, recently shared his perspective on XRP’s future. Looking…
In the dynamic world of meme coins, FLOKI, Pepe, and Bonk have each carved out…
XRP has attracted the attention of Mikybull Crypto (@MikybullCrypto), who identified a notable technical indicator…
TLDR Following Avalanche's (AVAX) partnership with Salvor, AVAX could surge to $45.11 before the end…
Like every other crypto asset, XRP has not been in its best run, which is…