Ripple President Monica Long recently addressed the speculation surrounding Ripple’s upcoming stablecoin, RLUSD, and its impact on XRP. Speaking on the Scoop podcast, Long highlighted how RLUSD is designed to enhance, not replace, XRP’s role in Ripple’s payment solutions.
Integration with XRP Ecosystem
Long explained that RLUSD, set to launch soon, aims to complement XRP by facilitating efficient cross-border transactions. While XRP remains central to Ripple’s payment solutions, RLUSD will support and expand its use, potentially attracting more users to the XRP Ledger.
Ripple’s Strategy
In April, Ripple announced the RLUSD stablecoin as part of its entry into the $150 billion stablecoin market. The stablecoin will be integrated into Ripple’s On-Demand Liquidity offering, which uses XRP as a bridge currency to settle transactions quickly between banks and financial institutions. This strategy aims to boost the utility of XRP, rather than replace it.
Market Response and Clarifications
Following the announcement, the crypto community speculated about the stablecoin’s impact on XRP. Long’s recent comments confirm that Ripple has not abandoned XRP as a payment token. Instead, RLUSD is positioned as a complementary product, aligning with Ripple’s vision of the Internet of Value, where various assets are tokenized on-chain.
Dual Role of RLUSD and XRP
Long elaborated on the dual role of RLUSD and XRP for payment and developer utilities. For payments, she noted that some transactions are more cost-effective in US dollars, particularly in high-liquidity markets like USD/EUR. However, in regions with insufficient liquidity, such as sub-Saharan Africa and parts of Europe and the Middle East, XRP remains crucial for efficient cross-currency settlements.
Benefits for Developers
Regarding developers, Long emphasized the importance of US dollar stablecoins as an entry point for buying cryptocurrency and other tokenized assets. She pointed out the potential of Ripple’s decentralized exchange (DEX) within the XRP Ledger, where high-quality stablecoins like RLUSD can add significant value.
Community Reactions
Long’s insights have attracted significant attention from the XRP community. Other Ripple executives, including CTO David Schwartz, have also stressed that RLUSD will benefit XRP, reinforcing its utilities rather than diminishing them.
Conclusion
Monica Long’s remarks clarify Ripple’s strategy with RLUSD, ensuring it complements and enhances XRP’s role within Ripple’s ecosystem. This approach aims to expand XRP’s utility and attract more users, aligning with Ripple’s broader vision for the future of digital finance.
