In response to a court ruling last year that found institutional sales of XRP tokens in violation of U.S. security laws, Ripple has made a strategic adjustment by transitioning its on-demand liquidity (ODL) services for U.S. customers from XRP to Tether's USDT stablecoin.

Monica Long, President of Ripple, has underscored the company's commitment to swift compliance with legal restrictions while ensuring uninterrupted ODL services for U.S. clients. To facilitate this transition, Ripple has engaged entities located outside the U.S. to facilitate sales of XRP to ODL clients, while U.S. customers now utilize USDT as a bridge currency for transactions.

Moon Lambo, a prominent XRP YouTuber, highlighted Ripple's Singapore subsidiary as the primary counterparty for XRP sales, signaling a strategic pivot towards entities outside the U.S. to navigate regulatory challenges.

Internal communications within Ripple have also revealed the implementation of minimum asset requirements for ODL clients, with a threshold set at $5 million. This measure aims to ensure the financial sustainability of ODL operations while prioritizing the protection of end customers. Exceptions to this requirement are granted for sophisticated organizations, demonstrating Ripple's proactive stance in navigating regulatory complexities.

While these adjustments aim to mitigate regulatory risks, Moon Lambo suggests that ODL transactions can proceed smoothly as long as they do not fall under U.S. jurisdiction.

In compliance with the SEC order issued in 2021, Ripple has embarked on transitioning all ODL customers in the U.S. from XRP to an intermediary currency, with USDT being the chosen alternative. Additionally, Ripple introduced a requirement last year mandating that all ODL clients maintain assets worth at least $5 million, unless they are large financial institutions.