- NDAs with Financial Institutions
- Ripple's Arguments in Court
- XRP Community Reaction
Ripple has been collaborating with financial institutions worldwide to promote XRP adoption in the payments space. Recently, court transcripts revealed that the company had signed over 1,700 non-disclosure agreements (NDAs) with these institutions.
NDAs with Financial Institutions
The information about the 1,700 NDAs surfaced in the Southern District of New York when Professor Alan Schwartz provided expert testimony in the Ripple vs. SEC case. Schwartz, a Yale Law School law professor, analyzed the 1,700 contracts for the court. The contracts were signed between 2013 and 2020.
Ripple's Arguments in Court
Ripple argued that the contracts proved that neither XRP nor Ripple’s contracts transferring XRP are investment contracts within the meaning of the Securities Act of 1933. They also helped establish that, under Howey, Defendants did not offer or sell XRP as part of any common enterprise; that Ripple did not agree to any relevant post-contractual obligations to recipients of XRP; and that no recipient of XRP had — and as a matter of law could not have had — any reasonable expectation that Ripple would engage in efforts to generate profits for the recipients of XRP or to increase the market price of XRP.
XRP Community Reaction
While the documents were submitted into court discovery two years ago, they dominated the XRP community’s conversations on social media over the past weekend. XRP enthusiasts pointed out that these contracts prove that XRP is wildly popular in the regulated traditional financial space. If Ripple signed contracts with 1,700 companies, then a sizeable number would have been using or intending to use the crypto in fund transfers.
XRP remains one of the few cryptocurrencies that have shown growth in the past day, despite a market downturn. Trading at $0.5768, XRP continues to illustrate stability and interest from financial institutions.
