Though Ripple’s legal fight with the SEC first brought in December 2020 is not yet over, the ruling on XRP has already made considerable impact in the crypto sector

Stu Alderoty, chief legal officer (CLO) of Ripple Labs, has reportedly said US-based banks may turn to XRP for cross-border transactions after a recent court ruling.

As per a CNBC report on July 17, Alderoty expressed confidence that U.S. banks and financial institutions could start exploring XRP for use in cross-border payments. The Ripple CLO reportedly made the statement less than 24 hours after a federal judge in the company’s case against the U.S. SEC ruled the XRP token was not necessarily a security.

I think we are optimistic that this judgement would give financial institution customers or potential customers comfort to at least come in and begin the discussion about the problems they are facing in their business, real-world problems in terms of moving value across borders without paying high fees, he said on July 14. Hopefully, this quarter will spark a lot of discussions in the US with customers, and hopefully, some of those discussions will actually turn into real business.

Though Ripple’s legal fight with the Securities and Exchange Commission first brought in December 2020 is not yet over, the ruling on XRP has already made considerable impact in the crypto sector. Many U.S. exchanges have declared they would relist the token for trading or would consider doing so for the first time in over two years, and some lawmakers have reiterated calls for regulatory clarity.

With the label of “security” apparently no longer hanging over XRP, cooperation between Ripple and banks lessened by the Securities and Exchange Commission lawsuit could find new life. BoA had been eyeing Ripple in 2019, and American Express first partnered with the blockchain company in 2017.

At one time, XRP’s price was around $0.74, having risen by over 50% since the court ruling. It became the fourth-biggest cryptocurrency in terms of market capitalization after the price boost.