The report that 8th largest bank in the United States joining RippleNet is all over the crypto space, displaying Ripple as an important startup amongst its contemporaries.
PNC was the first bank in the country to begin the usage of Ripple blockchain solution for cross-border remittance service. This was made known in a report published by Fintech Futures on Aug. 29, relating that PNC Treasury Management has started using RippleNet.
“The ability to receive a payment from an overseas buyer against their invoices instantly, transforming the way they manage their global account receivables and allowing them to better manage their working capital,” the report reveals.
However, Ripple has been at the center of a tough legal battle since May 2018 over an allegation that the company dishonored state and federal securities laws by selling unregistered security to investors.
The San Fransisco distributed ledger startup continues to battle the suite till date as other investors file their own case against the company to rejuvenate the lawsuit.
Recently, another fresh case was file by some investors. As amended on August 5, the complaint consists of new allegations, and Ripple, for the first time, will have to respond to the questioning matters.
“That filing will be the first time in the already-long history of this litigation that Ripple will substantively respond to the allegations around XRP,” the general counsel at crypto lending startup Compound Finance, Jake Chervinsky stated.
While Ripple has until September 19 to respond to the latest suite, it is sure a big quiver for the company and its token in the United States as other investors are highly anticipating the outcome.
As an addendum, the fact that Ripple is facing huge criticism from its community over a claim that it is behind the falling price of XRP is yet another pain in the butt of the company.
However, Brad Garlinghouse recently told the community that the Lawsuit may be decided soon, and it would be known if XRP is a Security or not under the policy of SEC.
While citing the UK Financial Conduct Authority which classified XRP and Ether as a utility token and exchange token earlier this month, Garlinghouse reechoed his stance that XRP is an asset.
Even though Ripple has managed to get its token officially certified as an asset and not a security in places like Luxembourg, the U.S. remains a major focus for the tech startup as it continues to push for the clarity of its token. The lack of clarity has made some investors stay aloof from the coin.
Avid lovers of the token including Ripple team members believe XRP has never been a security and it won’t. They claim that the fact that other countries did not characterize XRP as a security is an attestation.
With the latest development where the 8th largest bank in the United States officially joined Ripple by using its solution, RippleNet, the blockchain firm looks to be a few step closer to getting its token certified by the US SEC a a token and not a security.