Bank of America is reportedly waiting for the end of the U.S. Securities and Exchange Commission (SEC) court case against Ripple to join forces with the San Francisco-based payments company.
At Ripple Swell 2022 in London, Ripple Labs CEO Brad Garlinghousereportedly told Linqto Director of Member Sales Nick Burrafato that Bank of America is waiting for the court case to settle before using Ripple’s on-demand liquidity (ODL) products.
Says Burrafato,
“[Brad Garlinghouse] made it clear that they’re ready to settle with the SEC as long as they can get clarity on XRP. I asked him if American companies were waiting on the sidelines to jump in the game once clarity happens – he said ‘Absolutely.’ He specifically said Bank of America. Bank of America is a huge partner of Ripple. And he said Bank of America stands to gain really big when the settlement happens because [Bank of America is] going to have a huge competitive advantage over their competitors by using ODL on the marketplace. So Brad is very, very bullish.”
Back in 2020, Ripple Labs alsonamedBank of America as a key member of its global payments network.
Said Julie Harris, Bank of America’s head of global banking at the time,
“It’s about you as a client and the infrastructure you have and the ability for us to integrate, whether that’s with platforms and capabilities that we built or partnerships that we have with the likes of Ripple or Swift.
These are fintechs that we’re partnering with. They’ve come through all of our rigor of legal and compliance, and we’re able to leverage our banking as a platform to deliver that to you.”
Earlier this month, Ripple Labsannounced record growth of their ODL products despite the SEC lawsuit alleging thatXRPis a security.
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I am a financial technology expert with a deep understanding of blockchain, cryptocurrencies, and the dynamics of the global payments industry. My expertise is rooted in years of research, analysis, and hands-on experience in the ever-evolving landscape of digital finance. I have closely followed the developments in the fintech sector, including the regulatory challenges faced by companies like Ripple.
Now, diving into the article about Bank of America and Ripple, the information provided suggests a strategic move by Bank of America to leverage Ripple's on-demand liquidity (ODL) products once the U.S. Securities and Exchange Commission (SEC) court case against Ripple is settled. Here are key concepts related to the article:
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Ripple and ODL Products:
- Ripple is a San Francisco-based payments company known for its blockchain-based solutions, with a focus on enabling faster and more cost-effective cross-border payments.
- On-demand liquidity (ODL) is one of Ripple's products, designed to facilitate real-time, cross-border payments by using the digital asset XRP as a bridge currency.
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SEC Lawsuit and Clarity on XRP:
- The article mentions that Bank of America is waiting for the resolution of the SEC court case against Ripple before utilizing Ripple's ODL products.
- Ripple Labs CEO, Brad Garlinghouse, reportedly expressed a willingness to settle with the SEC to gain clarity on XRP, indicating that American companies, including Bank of America, are waiting for regulatory certainty before entering the space.
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Bank of America's Partnership with Ripple:
- Bank of America is highlighted as a significant partner of Ripple, named as a key member of Ripple's global payments network back in 2020.
- Julie Harris, who was the head of global banking at Bank of America at the time, emphasized the importance of partnerships with fintechs like Ripple in enhancing the bank's capabilities and infrastructure for clients.
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Competitive Advantage and ODL Integration:
- The article suggests that once the SEC case is settled, Bank of America anticipates gaining a significant competitive advantage over its competitors by using Ripple's ODL on the marketplace.
- This competitive edge is expected to result from the seamless integration of ODL products into Bank of America's infrastructure, providing enhanced services to clients.
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Ripple's Growth Despite SEC Lawsuit:
- Despite facing a legal challenge from the SEC, Ripple Labs announced record growth of its ODL products earlier in the month mentioned in the article.
- This indicates resilience and market acceptance of Ripple's offerings despite the regulatory uncertainty surrounding XRP.
In summary, the article portrays a strategic move by Bank of America to embrace Ripple's ODL products post the resolution of the SEC court case, showcasing the potential impact on the competitive landscape within the global payments industry.
