XRPL Labs Drops ‘IOU’ Term for Tokens Issued on XRP Ledger

[waybesuricata]

XRPL Labs has decided to stop using the term “IOU” for issued tokens on the XRP Ledger.

On the Ledger, all currencies other than XRP can be represented as issued currencies, which are sometimes called “IOUs.” These are tracked in accounting relationships called “trust lines” between addresses.

Once shared between multiple addresses from a single hub, ‘IOUs’ of the same issued currency can ‘ripple’ between addresses via the shared hub.

Source and continuation of the article: https://beincrypto.com/xrpl-labs-drops-iou-term-for-tokens-issued-on-xrp-ledger/

[Alcor]

Apparently, Ripple Labs with this move also wants to distance itself from any ripple's attitude towards securities, which the SEC insists on belonging to. It could be used by Ripple Labs in a lawsuit with the SEC later this month. We'll see, of course, but this is unlikely to allow this company to avoid penalties.