Ripple, a leading blockchain solutions provider, is eyeing the lucrative United States market for its Payments (formerly ODL) services. In a strategic move, Ripple has partnered with Uphold, a prominent US-based exchange, to facilitate XRP sales for Ripple Payments in the country.
The partnership between Ripple and Uphold is seen as a key step in resolving the issues with offering its payment services in the US. Currently, Ripple Payments is not available in the US due to the ongoing legal battle with the US Securities and Exchange Commission (SEC). The SEC has filed a lawsuit against Ripple, alleging that its past XRP sales violated securities laws.
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Amidst this legal challenge, Ripple CTO David Schwartz has previously expressed the company’s intention to offer Ripple Payments in the US, sourcing XRP from alternative channels rather than the payment firm itself.
Recent comments from Schwartz indicate that Ripple is exploring the possibility of leveraging Uphold to obtain XRP for its payment services in the US. This approach would help the firm avoid potential regulatory action in the US.
Uphold has confirmed its role as one of the exchanges to facilitate Ripple Payments transactions involving US-based institutions. However, a key distinction is that Uphold will not purchase XRP tokens directly from Ripple. Instead, Uphold will acquire XRP and other assets from the open market to support these transactions.
Exactly Right. XRP sales through @Ripple solved through sales at @UpholdInc following now clarified legal guidelines of ‘Ripple Payments’ (Formerly ODL) to ensure US capable regulatory clarity to now ‘Go Live’ in the US Markets! https://t.co/E8393J5AYs
— Digital Assets Daily (@AssetsDaily) October 24, 2023
For Ripple, this partnership holds significant importance, as the US market plays a crucial role in the company’s growth strategy. Launching Ripple Payments successfully in the US could lead to widespread adoption of XRP and further strengthen the firm’s payment network.
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Uphold’s Role in the Partnership
Uphold’s collaboration with Ripple marks a significant milestone that could strategically open doors for Ripple in the US market. By leveraging Uphold’s established presence and credibility, Ripple is positioning itself to tap into one of the world’s largest cryptocurrency markets.
One of the primary advantages of partnering with Uphold stems from its compliance with US regulations. Being a US-based exchange, Uphold is obligated to adhere to all applicable laws and regulations, ensuring that XRP liquidity provided for Ripple Payments transactions involving US institutions remains within the legal framework.
Moreover, Uphold’s reputation as a reliable and trusted exchange boosts confidence in the partnership. With a decade of experience in the industry, the exchange has earned the trust of the crypto community, bolstering Ripple’s trust in their collaboration.
In terms of market access, Uphold boasts a vast and expanding customer base. With over 7 million customers and more than $10 billion in managed assets, Uphold offers Ripple a substantial pool of liquidity to operate in the US.
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