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Ripple, which has a total valuation of over $ 10 billion, is also known as the company behind the cryptocurrency XRP. The connection between Ripple and XRP is quite complex. Ripple has also filed multiple lawsuits in this regard and now there is a risk of XRP being declared a title. Ripple’s CEO said the uncertainty created by this situation has resulted in the loss of serious customers for the company.
“We are losing customers to XRP”
In an interview with Julia Chatterley, Brad Garlinghouse actually released a statement that drew reaction from XRP investors. Chatterley asked the famous CEO if the XRP cryptocurrency tie had a negative impact on Ripple. Garlinghouse said some potential investors have actually decided to wait because of XRP.
“Often, when I talk to customers and tell them about the product XRP uses in their checkout flow, they ask me about regulatory developments. We have had clients who replied: “We will wait until a clear regulatory framework is formed.”
Garlinghouse recently claimed in a podcast that a company that doesn’t want to be named doesn’t want to use On-Demand-Liquidity (ODL) just because of XRP:
“Yesterday I was on the phone with the CEO of a financial services company. He told me, “We want to work with you, but we can’t use Ripple’s on-demand liquidity product.”
ODL product, the backbone of the XRP volume
ODL is known as a payment platform that uses XRP cryptocurrency as a bridge asset. The product, formerly known as xRapid, uses XRP and fiat money for cross-border transfers. Transfers from institutions wishing to send money from country A to country B are converted from country A’s fiat money into XRP. After that, the XRP funds are sent to the cryptocurrency exchange and intermediary associated with country B and converted to that country’s fiat currency.
The transfer process, on the other hand, can be completed during the day, even if it will take weeks or months, thanks to XRP. The transaction fee is also much lower than SWIFT and its equivalents. However, uncertainty about XRP is certainly a big problem for both individual and institutional investors. The conclusion of the ongoing case in the US could put an end – for better or for worse – to this uncertainty for Ripple.
The recent IMF announcement that XRP, BTC and ETH are “unofficial currencies” could reduce security uncertainty.
