On-Demand Liquidity (ODL) products are a trademark of Ripple, a provider of blockchain-based solutions for international payments. Many fintech companies have teamed up with Ripple to employ its ODL services, but more businesses have been discouraged from doing so because of the ongoing XRP litigation against the San Francisco-based cryptocurrency company.
The Bank of America is one of the financial institutions that has put a stop to its adoption of Ripple’s ODL product as a result of the Ripple-SEC dispute. However, in spite of the ongoing legal dispute regarding XRP, Ripple’s ODL products continue to expand significantly.
North Carolina is the main office of Bank of America, a leading American multinational investment bank and provider of financial services. Nick Burrafato, Director of Member Sales at Linqto, cites remarks made by Ripple CEO Brad Garlinghouse at the Ripple Swell 2022 summit in which he claimed that Bank of America is holding off on using Ripple’s ODL services until the XRP case is resolved.
Garlinghouse noted that if a resolution is reached between the SEC and Ripple, the banking company will benefit greatly. He thinks that Bank of America would have a significant competitive edge over its rivals if it adopted the On-Demand Liquidity services.
Nick Burrafato narrated:
“[Brad Garlinghouse] made it clear that they’re ready to settle with the SEC as long as they can get clarity on XRP. I asked him if American companies were waiting on the sidelines to jump in the game once clarity happens – he said ‘Absolutely.”
“He specifically said Bank of America. Bank of America is a huge partner of Ripple. And he said Bank of America stands to gain really big when the settlement happens because [Bank of America is] going to have a huge competitive advantage over their competitors by using ODL on the marketplace. So Brad is very, very bullish.”
It is important to note that the Bank of America is now a committee member for Ripple. The leading bank partnered with Ripple in 2020.
Julie Harris, who was then the head of worldwide banking at Bank of America, responded to her company’s inclusion in Ripple’s global payment network by saying;
“It’s about you as a client and the infrastructure you have and the ability for us to integrate, whether that’s with platforms and capabilities that we built or partnerships that we have with the likes of Ripple or Swift. These are fintechs that we’re partnering with. They’ve come through all of our rigor of legal and compliance, and we’re able to leverage our banking as a platform to deliver that to you.”