Coinbase Says #XRP Utility in ODL Makes It Attractive to Financial Institutions

JackTheRippler (@RippleXrpie), a prominent crypto influencer on X, drew attention to a recent statement by Coinbase suggesting that the digital assets utility in Ripple's On-demand Utility (ODL) services makes it attractive to institutional investors.

In a recent statement, Coinbase has suggested that the digital assets utility in Ripple’s On-demand Utility (ODL) services makes it attractive to institutional investors. This observation comes as part of Coinbase’s filing with the U.S. Commodity Futures Trading Commission (CFTC).

The document, submitted on April 10, is part of Coinbase’s request to self-certify the listing of XRP futures contracts on its derivatives trading platform, which is set to launch on April 21.

Coinbase Applied for No Dues Order to Offer XRP Futures

Coinbase is applying for a no-dues order from the CFTC to offer futures contracts on its derivatives trading platform, an offering that is set to begin on April 21, according to a recent filing with the regulator.

The move will bring back XRP-related derivatives to U.S. platforms after Paymium, a European cryptocurrency exchange, shut down its U.S. operations in 2021 due to a lack of clarity from regulators at the time.

Coinbase’s filing also details the exchange’s perspective on XRP’s utility in global finance.

Coinbase’s filing also details the exchange’s perspective on XRP’s utility in global finance.

As part of the filing, Coinbase described XRP as a digital asset that serves a distinct purpose in streamlining international transactions. The exchange referenced the asset’s integration into Ripple’s enterprise-level payment systems.

According to the filing, XRP’s use as a bridge currency within ODL enables real-time foreign exchange settlement, reducing transaction fees and processing times for cross-border remittances and corporate transfers.

Experts Opine on XRP Utility and Coinbase Filing

Coinbase suggests that these advantages position the asset as a viable solution for financial institutions, payment processors, and remittance platforms seeking to optimize settlement mechanisms.

The company went on to highlight that these qualities have made XRP appealing to industry players seeking faster and more cost-effective alternatives to traditional banking rails.

The statements suggest that Coinbase views XRP not just as a speculative instrument but as a utility-driven asset with meaningful applications in global finance.

Prominent figures in the XRP community quickly responded to the details within Coinbase’s filing. WrathofKahneman, a well-known community member, drew attention to the specifics of Coinbase’s language.

Specifically, they noted that Ripple had already moved away from branding its services under the “ODL” name as of 2023, having replaced it with what is now known as its Crypto Liquidity solution.

While ODL is still commonly used, the filing’s continued reference to the term led some observers to speculate whether the exchange has direct insight into Ripple’s operations or if it relied on legacy information.

The filing itself is a step toward launching XRP futures trading on Coinbase’s derivatives arm, a development that many within the crypto sector see as a milestone. If approved, it would mark a significant return of XRP-related derivatives to U.S.-regulated platforms.

Moreover, some within the community view this as a potential precursor to the eventual approval of XRP spot exchange-traded funds (ETFs), which would significantly expand investor access to the asset.