Ripple CEO Brad Garlinghouse reports record business, including with XRP. But the court case in the U.S. is blocking the market there, he said. In New York, the judge has tightened the schedule for the trial.
If it were not for Ripple (XRP) the mammoth lawsuit with the U.S. Securities and Exchange Commission SEC, the company and its cryptocurrency would be on the verge of an absolute breakthrough in business – at least that’s what CEO Brad Garlinghouse says in a TV interview with the financial news agency Bloomberg. But the court case in New York, which has been ongoing since December 2020 and was brought by the U.S. Securities and Exchange Commission (SEC), is blocking Ripple in the United States. As a result, 95 percent of Ripple’s customers are now from outside the U.S., and it increasingly employs people overseas, Garlinghouse says. Ripple is headquartered in San Francisco and in the past has flirted with relocating because of U.S. regulation of the crypto sector.
Specifically referring to Ripple’s core business, Garlinghouse spoke of an eightfold increase in revenue in Q1 2022 compared to Q1 2021, specifically referring to RippleNet with the inclusion of XRP through On-Demand Liquidity (ODL) . In this arrangement, Ripple simplifies cross-border transfers for banks and financial service providers by using XRP as a bridge currency and Ripple’s network to provide split-second confirmation of a transaction. According to Garlinghouse, this product is now making revenue in the billions each quarter. Because Ripple is a private company, it is not required to provide detailed financials. In the final quarter of 2021, Ripple had talked about XRP demand at ODL in its voluntary report at a record $1 billion.
News from the court for Ripple – judgment still possible in 2022?
Garlinghouse used the Bloomberg appearance to again etch in the direction of the SEC. While his company also shows how the crypto industry is driving innovation worldwide, he said, the SEC’s anti-crypto stance provokes the exodus of jobs from the U.S. and worsens competitiveness. Garlinghouse had made such accusations several times before.
But in the process that is severely hampering Ripple in the U.S., the court has now surprised legal observers. Only a few days ago, the SEC and Ripple had jointly presented a timetable that would have meant an end to the negotiations just before Christmas and a verdict in 2023. In the process, Ripple had agreed to a compromise to avoid further delaying the proceedings. But in an unusual move, the court did not accept the proposal supported by both litigants and set the exact deadlines a good month earlier. As trial monitor attorney James Filan points out via Twitter, for example, the trial deadline is now set for Nov. 15, 2022. Filan’s professional colleague Jeremy Hogan interprets this step on Twitter as an indication that the court wants to conclude the case this year.
Conclusion: Ripple gives cause for cautious optimism
The financials that Ripple and CEO Garlinghouse are making public in 2022 are a giant step forward for XRP. In the past, Ripple’s technology for international money transfers were in demand, but customers chose not to use XRP in the process. That seems to be changing at a rapid pace right now, and it could be that Ripple’s entry into Tranglo turns out to be a kingpin move. This is because Tranglo is now the reference for Ripple and XRP for practical use cases and is not impacted by the SEC in its Asia-Pacific business space.
Good for Ripple are also the signs from the court. In terms of content, observers and Garlinghouse alike see Ripple on the winning track and the SEC in hot water. The wave of the fence post to an accelerated end of the process certainly comes in handy for Ripple. If XRP is allowed to become legal again in the USA, Ripple could go on an overtaking course – so optimists believe.
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