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Australian Freight & Trade Alliance Hints at Ripple Partnership Following U.S. Legal Clarity
In Summary
- Australian Freight & Trade Alliance signals interest in working with Ripple.
- No formal announcement has been made regarding a partnership.
- Ripple continues to build alliances with strategic partners.
- The term ‘ODL’ is no longer used, but no changes to payments systems have occurred.
Ripple is forging strategic alliances despite the ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). The Australian Freight & Trade Alliance (FTA) has just confirmed it is in talks with Ripple regarding payment systems for its members. This move follows Ripple’s recent acquisition of a full license to provide digital payment services in Singapore, indicating a bullish outlook for Ripple and its cryptocurrency XRP.
Director of the FTA, Paul Zalai, explained in a recent interview, “Ripple came to us and explained their offerings to me and a group of major bank representatives and because of the court case, we didn’t proceed. Now that the case is over, we will follow up with Ripple to enable Cross Border Payments.”
Who is the Australian Freight & Trade Alliance?
As Australia’s peak industry body, the Freight & Trade Alliance (FTA) brings together importers, exporters, customs brokers, freight forwarders, logistics service providers, industry associations, and other participants in the global supply chain.
Ripple’s Leading Position in Cross-Border Payments
The FTA states on its website that Ripple is uniquely positioned as a leading provider of crypto and blockchain solutions for businesses. Ripple has been consistently forming partnerships with banks and payment providers, acquiring businesses to expand its footprint and gain entry into markets through licensing.
Zalai emphasised, “We’ll say to our members, look here is this new technology, it can generate real-time payments, and they seem to have a lot of checks and balances in place.” He added that major banks have also expressed interest in Ripple and its technology.
Ripple’s Cross-Border Payments See Increase in Use
Ripple uses XRP for its cross-border payments. The service used to be called ODL (On Demand Liquidity), the terminology was recently retired as Ripple believed it was challenging to grasp.
Emi Yoshikawa, Ripple’s VP of Strategy, confirmed, “Yes, ODL is a word that is difficult to understand at first glance for outsiders, so we have decided to consolidate it into the term Ripple payments. (ODL still exists as a function)”
Nevertheless, whether referred to as ODL or cross-border payments, its usage is steadily increasing with more partners and use cases.
Shortly after the initial victory against the SEC in July 2023, the XRP community asked Ripple’s Chief Technology Officer, David Schwartz, if the ruling meant that XRP could now be used in the United States.
Schwartz, who goes by the moniker Joel Katz on X, responded that Ripple is still in the process of figuring this out. Regardless, companies can still utilize Ripple’s services as long as they do not purchase XRP directly from Ripple, as per Judge Torres’ decision, which she reaffirmed when she rejected the SEC’s interlocutory appeal in early October.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
