Coinbase Highlights XRP's Utility in Ripple's ODL Services, Plans Futures Launch

Coinbase has highlighted the utility of XRP in Ripple’s On-demand Liquidity (ODL) services, making it an attractive option for financial institutions. This revelation came as part of Coinbase’s recent filing with the U.S. Commodity Futures Trading Commission (CFTC), where the exchange sought to self-certify the listing of XRP futures contracts on its derivatives trading platform, with the launch planned for April 21.

In its filing, Coinbase described XRP as a digital asset that plays a crucial role in streamlining international transactions. The exchange noted that XRP’s integration into Ripple’s enterprise-level payment systems enables real-time foreign exchange settlement, significantly reducing transaction fees and processing times for cross-border remittances and corporate transfers. This utility positions XRP as a viable solution for financial institutions, payment processors, and remittance platforms aiming to optimize their settlement mechanisms.

Coinbase emphasized that these advantages make XRP appealing to industry players seeking faster and more cost-effective alternatives to traditional banking systems. The exchange views XRP not just as a speculative instrument but as a utility-driven asset with meaningful applications in global finance. This perspective underscores the potential of XRP to revolutionize the way financial transactions are conducted on a global scale.

However, the filing also sparked some debate within the XRP community. Prominent figures, such as WrathofKahneman, noted that Ripple had moved away from branding its services under the “ODL” name as of 2023, replacing it with its Crypto Liquidity solution. The continued use of the term “ODL” in Coinbase’s filing led some to speculate whether the exchange has direct insight into Ripple’s operations or if it relied on outdated information.

Despite the terminology concerns, the filing itself represents a significant step toward launching XRP futures trading on Coinbase’s derivatives platform. If approved, this development would mark a notable return of XRP-related derivatives to U.S.-regulated platforms. Additionally, 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.