In 2025, the legal standoff between Ripple and the U.S. Securities and Exchange Commission (SEC) was resolved, fostering more active use of XRP in institutional markets.
Court Decision and Its Implications
The legal case between Ripple and SEC began in 2020 when SEC accused Ripple of selling XRP as unregistered securities. This conflict led to XRP’s delisting on U.S. exchanges and slowed Ripple's growth in regulated markets. In 2023, the court partially classified institutional sales of XRP as securities, while retail sales were not covered under this definition. In its ruling in May 2025, the court ordered Ripple to pay $50 million and cease all appeals. This decision clarifies the legal status of XRP regarding secondary market trading, minimizing regulatory risks for its adoption.
XRP's Edge in Cross-Border Payments
Ripple's On-Demand Liquidity (ODL) service allows international transfers without needing pre-funded foreign bank accounts. Utilizing the XRP ledger, transactions that typically take days to settle through SWIFT can be completed in seconds, significantly reducing costs and freeing up stranded capital. By mid-2025, the Ripple network was already operational in high-volume remittance corridors in Southeast Asia, Latin America, and the Middle East. Various banks, such as UnionBank in the Philippines and Travelex Bank in Brazil, have begun integrating ODL for cross-border payments, building a solid competitive edge against SWIFT.
Ripple's Expansion Beyond Payments
Ripple is also expanding its offerings in asset tokenization. For instance, real assets such as real estate titles and treasury bonds are being tokenized on the XRP ledger via the RLUSD stablecoin, which is pegged to the U.S. dollar. In 2025, Ripple acquired the broker Hidden Road for $1.25 billion, gaining access to FX, crypto, and derivatives markets with an annual clearing value of over $3 trillion. This move strengthens Ripple's position in trade settlement and custody markets, expanding the applicability of XRP beyond payments.
The resolution of the legal dispute between Ripple and SEC opens new avenues for XRP's utilization and creates opportunities for its competitiveness in the international payments market. Ripple's success in tokenization and expanding services promises to significantly impact the financial infrastructure.
