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Hello this is Matt on the moon Lambo Channel if a few days ago you had come To me and said Matt Ripple does not have Any on demand liquidity customers Utilizing xrp as a bridge currency I Would have thought you're off your Rocker but as it turns out it's true and I'm kind of surprised that I haven't Really seen any any conversation within The xrp community about this on social Media but this comes in a sworn Statement this is in an exhibit of the Most recent Ripple filing a sworn Statement a declaration from Ripple's President Monica long acknowledging that Ripple does not have any odl customers Now that doesn't mean that odl is not Being used anywhere and that doesn't Mean that xrp is not being used as a Bridge currency which I'll explain here And this is against the backdrop of a Broader conversation within our Community about the disastrous portion Of judge torres's ruling now I've long Argued that I I don't think that judge Tores is right on the institutional side Of things when it comes to On Demand Liquidity transactions uh but we got What we in the xrp community uh broadly Speaking cared about most which is the Legal status for xrp that it's not a Security and that's true but there is Additional concern from some that um if Depending on the how things conclude the
Remedy portion of the secv Ripple Lawsuit broadly speaking xrp holders on A global scale Might massively Panic resulted in a drop Of the price of xrp if there's a Far-reaching Injunction and this is being discussed By all sorts of Minds including um Attorney Bill Morgan of the xrp Community has just who's just been for Years on end now quite the wealth of Knowledge and always willing to share His uh legal perspective which I've Always appreciate I've highlighted them Endlessly on my channel and so I'm going To share with you some stuff on that Topic speciic specifically from him Because this is all intertwined here Actually if there's an injunction and It's severe what's going to happen well We'll talk about it but before going Further I do want to be clear I do not Have a financial background of any kind I am not offering Financial advice and You definitely should not buy or sell Anything because of anything I say right I'm just an Enthusiast who enjoys making YouTube videos about crypto related Topics but just as a hobby and just for Fun all right so here's a headline from The Crypt basic Ripple President says Ripple itself has no odl partners and Again if you had told me this just a few Days ago I would have thought you out
Your damn mind but it is true and it Actually ultimately does make sense it's Not as horrendous as it might sound on The surface but that doesn't mean that We couldn't have Things fall off the Rails here monong the president of Ripple recently revealed that the Company itself does not have any OnDemand liquidity Partners the 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 and so I'll just note that I've Already covered that portion of what's Going on in a fair amount of detail uh You may recall that Ripple is saying hey They don't want to pay any more than $10 Million in fines uh at the top they and They articulated why they think that's Fair they said there should be Absolutely no discouragement and I've Talked about the gille case as to why That's relevant uh let me scroll down a Little bit further and get to the meat Of this and then want to get directly Into the the U the conversation that's On social media platform X including Some uh comments from attorney Bill Morgan anyway piece continues long
Uncovered that when the SEC filed its Lawsuit against Ripple the company 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 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 of 20123 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 a Digital payment token services and Consequently this gave uh this license Governs the sales of xrp to odl Customers furthermore the Ripple Executive stressed that the contracts Facilitating xrp sales from Ripple 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 trans Erred to another party hence following a Thorough investigation mon 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 stress that Ripple Itself is a us-based entity does not Have any odl customers but its Subsidiary handles these sales and so That's how they've gotten around this Ripple out of undoubtedly a reasonable Almost want to say like abundance of Caution out of a reasonable amount of Caution right um they they they Structure things in a particular way Very so Ripple very hands off but There's a subsidiary which is governed By completely separate law outside of The United States and from what Ripple Claims that's just a matter of fact so The judge should have no say over what Happens with the the subsidiary of Ripple which is a separate legal entity And ripple itself from a legal Perspective it's literally true they Have no odl customers I didn't know that That's never been made public we of Course we wouldn't know that that's not Something Ripple would otherwise have Come out instead because you're kind of Get into the weeds here about how things Are structured here from a legal Perspective um but given that's the case
Uh are we actually at any sort of risk Here like what happens if there's some Sort of uh you know overburdensome Injunction here And um so a couple things I will Highlight just so you can see where this All came from let me check this out so I I want to go up to let's go I think it Was Page a little higher here so this is the Actual uh recent filing and this is yeah This is exhibit a and so here you can See this is the actual document Declaration of Monica long in support of Defendants opposition to plaintiff's Motion for remedies and entry of final Judgment so I'm just showing you that This is an actual thing here uh then Let's go to the relevant portion here And I think it was at the bottom page I Was just at I think yeah 34 uh yeah this Is this is what we're talking about here As of the date of this declaration to The best of my knowledge based on Reasonable inquiry all odl customers of Any Ripple subsidiary who use xrp uh in The odl product are domiciled outside The United States and are sophisticated Counterparties Ripple itself has no odl Customers pretty fascinating so not only Does Ripple itself have no odl customers Uh for any so the Ripple subsidiary and The primary one they said it's the Singaporean subsidiary that's conducting
These odl transactions for any Corridor That was touching the United States xrp Is not being used we now know that They're using a stable coin and I Believe it was usdt tether so that's What they're using so odl yes still Touching the United States but just with Tether um and then U for every other Corridor Under the Sun uh as far as we Know anyway it's it's all xrp so xrp is Still being used and would not be used In this instance but for this particular Litigation brought on by the SEC so then we have this post and this Is all tied together it's all under one Big umbrella this this it's is all Relevant so I'm going to tie back tie This all together in a sweet little bow Before the before the video is done here Is a post uh yesterday morning from xrp Community member and attorney Bill Morgan and he's not happy for good Reason I would say with judge torres's Ruling in the secv Ripple case Specifically Having to do with the odl and Institutional related sales and I Covered that very in depth at the moment But this is still relevant now as we're Actually um in the the remedes phase of This this lawsuit so here's what he said Judge Tor has got the odl part of the Summary judgment decision so wrong it is Hard to explain she no doubt understood
The contracts but how can she find that Holding tokens for a few seconds to Affect a payment is an in investment of Money or that there is an expectation of Profits from an Investment did Judge Torres understand The problems odl and the use of xrp as a Bridge currency and odl transactions is Meant to solve seems she didn't Understand and just lumped odl sales With other sales to institutional Investors without any explanation of why Sales to odl customers fall within the Same category as sales to other Institutional buyers yeah and so I think That he's knocking out of the park there And if you were here at the time before We got the um the Fantastic victory news On July 13th of last year you may recall That leading up to that it was broadly Expected that it we would have had if Anything the exact opposite ruling Perhaps that the programmatic sales they Actually were Pro problematic so you Know any sort of you can imagine any Sort of transactions Ripple had Pertaining to exchanges so on and so Forth but on the institutional side we Thought well surely surely they're not Going to bring that she wouldn't bring The hammer down on those right because There's certainly no expectation of Profit xrp is just it's used for an Actual purpose it's only held for a few
Seconds there's no chance that you could Anyone could reasonably expect some sort Of profit from that furthermore Ripple's Contracts prevented that from even Occurring in the first place it's in the The fine wording and that that Information actually came out recently So now we know that uh so many of us in That regard were were surprised but even Though we were most of us were surprised Anyway uh we were pretty happy because The part that bed most to us again as XP Holders xrp not being in security we got That piece but still attorney Morgan is Correct Here now uh my fellow expert YouTuber Jungle eek wrote to Bill Morgan on that Point and had the following to say judge Torres is pretty reasonable I have to Assume she sees odl as more a mechanism To sell xrp rather than send a payment That's the only way her ruling makes Sense yeah and so I'll pause to note Here that if Ripple is selling that and Then it does end up back into and you Mean obviously it's going to end out in In circulation ultimately she could in Theory think well Ripple's just selling This for a profit she could think that But how does that apply how do you apply The hoe test to that so she thinks that I'd be somewhat surprised because that's Very obviously deeply misguided like Even for a person like me who uh is not
An a lawyer I just pretend to be one on YouTube like pretty obvious and attorney Bill Morgan seems to think the same so He responded to Jung link and said that Would be a grave factual error even on The uncontested evidence they were Distributions by Ripple that means sales By Ripple but there was no dispute that Real crossb payments were made by odl Customers using the xrp sold by Ripple The judge specifically did not accept The assertion of the SEC that Institutional buyers including odl Customers were statuto Underwriters Right spot on so if there's some sort of Expectation of profit where where is it And if if you can't point that out we we Don't have the the Hoy test being Satisfied here Certainly but again she ruled what she Ruled it is what it Is um and I think that attorney Morgan's Right on that though uh and then you Have another uh xrp Community member Named Sherry at Cherry Empress 21 and I Don't know if she's a lawyer but she's Been very insightful over the years to Such a degree from a legal perspective That uh I would not be surprised if she Actually is an attorney I I didn't see It listed in in her bio maybe she said Whether she is publicly or not before Either way uh clearly very insightful But uh that said I don't exactly share
The concern that she has which is on Your screen right now let me read what She wrote to attorney Morgan here she Said if Tores rules on a permanent Injunction on the odl I am out so pause Note her what she's saying here is that If judge Torres rules in such a way that Ripple cannot use OnDemand liquidity She's saying that she is she's just out She doesn't want to hold xrp anymore and So in her P from her perspective that's A tremendous risk now I'm willing to be Persuaded of that I haven't been right Now and I'm going to articulate why but Let me share the rest of the message First she says the damage it could cause To Ripple's business is a risk I don't Want to wave through let me pause again Right right there though I will share This right now I I don't think that There is evidence that what Ripple is Doing in using xrp for anything uh has Has in any sort of detectable way Impacted the price of of xrp think about Any good bit of news that has ever come Out of Ripple and has has that caused The the price of xrp to go up in fact When uh when xrapid went live which then Became known as on demand liquidity Which we in the community we still call It odl because it's easiest to have a Conversation that way technically now It's it's part of Ripple pay pay and Ripple's pretty much R retired the odl
Term even though to make it even more Confusing uh they are using the term odl In the most recent legal filing from Just a few days ago since it sounds like A convoluted mess but uh anyway um so Even when xrapid launched um utilizing Xrp as a bridge currency in October 2018 The price of xrp went down so it just I Don't see the proof that if Ripple Couldn't use xrp as a bridge currency That xrp is just screwed now there could Be a some sort of scary headline that I Think would could result in some sort of Temporary move I mean maybe maybe maybe That's Reasonable uh but given that xrp has Legal Clarity here and given that There's no evidence that the market has Really given a damn up to this point uh I think what the market really cared About is the legal status of xrp and I Think that's I think that's provably the Case but um I I just and consider this Too and this is what we're going to get Into if Ripple can't use Odl if there's a full injunction saying You can't use it no M even no matter What the coin is well understand that Ripple today right this very second like They're they're not doing it Anyway they're not and any Corridor Touching the United States it's using a Stable coin instead of xrp that's Already the case today and that's that's
Publicly known now at this point today It is so if that's not a problem that Has caused the price of xrp to go down And it hasn't why would it in the future So even if there's a outright injunction What does that material materially Change about anything Ripple's doing the Answer is nothing they're already not Doing it what does so what does it Change so I don't see if if I'm missing Something let me know I mean I don't Pretend to know everything but I don't Think it changes anything I really Don't um now attorney Bill Morgan uh Seems to share that concern um and he so He reposted that from Sherry and wrote The Following oh wait actually I didn't Read the last sentence Did I she wrote Um sure they can potentially sustain the Business outside of the US but it's not A gamble I plan to play Sai and they Should be able to maintain that outside Of the United States in fact if I can Find it quickly I'll show you here in This document uh where they even stated As much um if I can't find it quickly And I'll just give you the cut of the Jib here but it was somewhere around Here they wrote something to the effect Of Um uh yeah maybe I don't know if I I Don't for sure if I can find it quickly Enough but they did they did state that Um you know with this being under like
Primarily Singaporean law uh you know All these transactions you know us law Has no control over what the the Ripple Subsidiary is doing which means Translate that to the most lay terms Possible that means that the Ripple Subsidiary can continue to use odl and Specifically use xrp as a bridge Currency in odl so that that's what Ripple is arguing from a straight up Legal perspective and that seems to make Tons of sense to me why would the United States have any sort of jurisdiction Over a different geographic region it's Not like this is part of international Law which would be separate from that That's that's not that's just not the Case that's not how this works so but Still even though that that was where my Brain was going from the beginning I um I I wanted to get perspective from Attorney Bill Morgan um and and I did Ask him a question but first let me Share with you um what he said about What Cherry said so he reposted that and He said you ought to be concerned so Attorney Bill Morgan when he posted this Six hours ago he's thinking yeah Actually this could be a serious problem He said you ought to be concerned those Saying it doesn't matter because xrp Itself has Clarity are underestimating The adverse consequences for xrp and the Xrpl ecosystem of a broad permanent
Injunction that stops ripples odl or Stops use of xrp in odl and so again I'll just repeat what I said just to Make sure that it's it's under Understood and this is why I was just Asking a question I I don't share that Concern from um from attorney Morgan but I also wanted to find out if perhaps I'm Just missing something I don't think I Am at this point because Again we already have Ripple with zero Odl customers they have literally zero And that's intentional of course they Take a hammer to zero and what does it Does it go to like negative one do you Have negative customers in like I I Don't think that's quite how this works So even if there was an injunction and The judge says no you can't do that well What's to Stop a subsidiary under different legal Jurisdiction from doing whatever the Hell they want with this Technology right um in fact I don't even Know if you could stop them from using The odl technology um with Tether and I I I literally I mean the Literal sense like I don't have Clarity On that but um I did write to attorney Morgan and I said said I shared that Article that I just ran through with you From the Crypt basic and I wrote Ripple President Monica long says they don't Have any odl customers according to
Ripple's latest filing a Singaporean Subsidiary has odl customers using xrp But Ripple itself does not would an Injunction to stop Ripple's odl apply to A Singaporean subsidiary if not then as Far as I can tell a worst case scenario Here is odl will continue to be used in Any corridor so long as it doesn't touch The United States and so that's the Extra little bit right there at the end That I wanted to add so I've already Shared my uh my suspicions based on what I've read to this point about the Long-term viability of xrp as a bridge Currency nothing Changes I mean the corridors touch the United States they were already Bludgeoned uh and then there's just a a Couple which we didn't even really know About uh which are using tether we Didn't know about that part that the Fact that tether was getting used either Until the other day but even if this is A worst case scenario and and uh the Since the US wouldn't have control over The you know you know a Sovereign Nation Basically and the rules applied There the worst I could possibly imagine Is no odl Corridor touches the United States not with xrp not with tether not With any coin but then it still lives Everywhere else on the planet if that is The case even if you think Ripple's Success in using xrp as a bridge
Currency Matters from a speculative Perspective Then why would the market freak out if It still gets to be used it's not like Anything worse is really happening here For xrp like we're already at the worst You it's it's like that scene from uh Super Troopers like officer I'm already Pulled over I can't pull over anymore You know you know what I'm saying it's Like if you if you already have zero Customers using it and then if you take Away the customers if if if if if the Law is such that you can't even have Tether used as a bridge currency and odl Well who cares if you're an xrp holder That's not xrp that's hether so even if That gets destroyed who cares I'm still Not seeing it Right uh now attorney Bill Morgan was Kind enough to take a take a couple Minutes here to respond to me which I do Appreciate always value his perspective And he said the following I think there Were subsidiaries referred to in the Complaint but that is a good point Matt Uh yeah and Al just pause note like they Said I think they said in the article to Which I just covered that part uh I Think there were three I want to say and And the Singaporean one that was the Primary one so uh Ripple has put that in The actual complaint filed to judge Tores and then he says U because I mean
You know the primary point is ISS well Even even if there's this this wide Injunction do we really care as xrp That's what I'm thinking in the back of My mind like do we really care though And so he ultimately says or ultim the Beginning part he said that's a good Point because I'm just trying to figure Out what as I wrote here um you know Would would the worst case scenario here Be that odl is used just not in any c Touch in the United States and so he Said good point to that and I said and Then he said rather I don't know the Answer a wide injunction is going to Push at least some odl customers away From xrp now that we know they can Choose and use other Assets in odl such As usdt why take a risk with xrp if the Injunction is why so that part um I Should probably just ask I could Probably use some additional Clarity on That exactly what he's thinking right There um let's just read that again so He said a wide injunction is going to Push at least some odl customers away From xrp now that we know they can Choose and use other Assets in odl such As usdt well um I already knew that that Was a possible Brad garlinghouse a Possibility anyway Brad Garling house Had stated that years ago that they Always left the option if there were any Sort of regulatory concern or any
Liquidity concerns in certain corridors With xrp they could use other uh other Coins and so now we know it happened for Sure here but um why would any odl Customer outside of the United States go Away from that because right now there Already is no Corridor uh even to this Day so based on what's Ripple said There's no Corridor touch in the United States using xrp none zero so who's Going to move like what I guess my Question for Bill would be who else is Going to not use xrp as a result of what Happens in the United States so maybe I It could be the case that I'm just Misunderstanding what he's writing here But I I I'm not um I I personally I'm Not seeing the concern but maybe I'm Just being an idiot sticking not Understanding what he's the idea is's Trying to convey here but I I don't see That um but then he said um why take a Risk with xrp if the injunction is wide Well again for the cors outside the United States what the hell does you Know what what judge Torres or the SEC Or anyone care I and then he says that Is why Ripple made a strong alternative Argument in the opposition opposition Brief two days ago that that if an Injunction is granted it should be Limited and exclude the reformulated odl Agreement I anticipated that two months ago yeah
And and and so that part makes sense Because Ripple and's he's right and he That's some good foresight and he shared This post from a couple months ago I'll Make that full screen if you want to Read it um so Ripple obviously would Prefer that there isn't some Far-reaching Overburdensome injunction so that um you Know not only could they you continue to Use on demand liquidity with tether but Hopefully on demand liquidity with xrp Hopefully there's some sort of path Forward you know if that doesn't happen Again like I just don't share the Concerns of any xrp holder that thinks That if this falls apart that this is The end of xrp and they're like to get Out for that reason it's just it's just To pretend like the rest of the xrp Ecosystem doesn't exist and so if Somebody is fearful of that then yeah I Mean I have no quals anybody wants to Sell do whatever you think makes sense I'm just sharing my thoughts on it too And I think that to to say if you can't Have Ripple the actual entity in the United States using xrp as a British Currency want to sell I I just again They're already not doing it and it's Today not a problem but even setting That aside what about the rest of the Xrp ecosystem does that mean anything to You what about the rest of the utility
The rest of the planet that thinks that Xrp makes Sense I just I don't I don't see that Changing as a result of an Overburdensome and know far-reaching Injunction uh that would go against what Ripple would prefer I just I don't see How that happens I'm willing to hear all Arguments and I think it's an Interesting discussion but I haven't Seen an argument that I I find Sufficiently compelling at this Particular Moment so I'm not worried about it I Just think that this is interesting Stuff and again to find out that Ripple Literally has zero uh customers that's Just something and so it's it's because From a technical perspective it's it's Outsourced to the subsidiary and that's The reason for that and it seems like it Was a smart very smart legal move uh They they they thought this through and Especially after they came under Tremendous attack from the SEC uh they They kind of did what they had to do so All good you guys let me know what you Think but I'll stop uh un wrap up here I'm not a financial adviser you should Not buy your sell anything because of Anything I say or right that would be a Very very very bad idea until next time To the Moon Lambo
