Monica Long, the president of Ripple, recently revealed that the company itself does not have any On-Demand Liquidity (ODL) partners.
This disclosure came in Ripple’s latest filing, which sought to oppose the SEC’s motion for remedies and entry for final judgment. The Ripple president was one of the executives who testified to support the company’s opposition to the SEC’s request for approximately $2 billion in fines.
Long’s testimony held significant weight due to her eleven-year involvement with Ripple and her current oversight of the company’s Compliance and Risk Management Committee.
In particular, Long’s current role as president grants her familiarity with Ripple’s XRP distributions. It includes present and past sales contracts concerning XRP and the context surrounding these transactions.
Accordingly, the Ripple president testified to several developments related to the ongoing litigation, including Ripple’s XRP distribution via ODL partners.
Ripple’s XRP distribution via Singapore Subsidiary
Long uncovered that when the SEC filed its lawsuit against Ripple, the company’s Singapore subsidiary had already received authorization to sell XRP to ODL customers. It operated under a licensing waiver in accordance with Singapore regulations.
Following the SEC’s lawsuit, Ripple’s Singapore subsidiary became the primary entity responsible for entering into XRP sales contracts with new ODL customers. Long highlighted that these contracts were executed in compliance with Ripple’s licensing exemption until October 2023.
By this time, Ripple’s Singapore subsidiary had obtained a Major Payment Institution license from the Monetary Authority of Singapore. This authorization enabled it to conduct Digital Payment Token Services. Consequently, this license governs the sales of XRP to ODL customers.
Ripple Itself Has no ODL Partners
Furthermore, the Ripple executive stressed that the contracts facilitating XRP sales from Ripple’s Singapore subsidiary to ODL customers explicitly specify that they are subject to Singaporean law.
Moreover, she pointed out that these contracts include a non-assignment clause. This suggests that the rights and obligations outlined within the agreements cannot be transferred to another party.
Hence, following a thorough investigation, Monica Long testified that all ODL customers of any Ripple subsidiary utilizing XRP in the ODL product are outside the United States, except three licensed exceptions. Moreover, these ODL customers are considered sophisticated counterparties.
Accordingly, Long stressed that Ripple itself as a U.S.-based entity does not have any ODL customers, but its subsidiary handles these sales.
Ripple President Monica Long Testimony
Furthermore, she highlighted that neither Ripple nor any of its subsidiaries engaged in the sale of XRP from the SEC’s filing of December 2020 until the U.S. court’s decision in July 2023.
