In a recent interview with “The Scoop” podcast, the President of Ripple Labs, Monica Long cleared the air regarding the long-awaited stablecoin, RLUSD. Her take hinges on how it affects XRP, the company’s associated digital asset.
Monica Long: Ripple Stablecoin RLUSD To Compliment XRP
During the chat, Monica Long told the host, Frank Chaparro the intentions of the payments firm for the forthcoming US dollar stablecoin (RLUSD).
According to Long, the plan to unveil a stablecoin hinges on improving efficiency in key payment routes with high liquidity, like transactions from USD to EUR. This will mark a move to enable economical and transparent transactions.
This new project has had the crypto community speculating on how the new stablecoin will fit into Ripple’s ecosystem and its impact on XRP. This was demonstrated recently by analysts in the crypto market as they raised concerns regarding the price of XRP coin in contrast to the $10,000 price prediction made by experts in May.
Long, however, calmed the worries with her remarks. She stressed that RLUSD, slated for an imminent launch, is crafted to supplement XRP and not to substitute it.
Ripple’s Innovation Strides
Long explained that while XRP will retain its pivotal position in Ripple’s payment offerings, the rollout of RLUSD is intended to enhance XRP’s utility. It is a strategic maneuver that might entice more users to the XRP Ledger.
In light of this, the firm recently inked a strategic partnership with Archax, the first digital asset exchange regulated by the FCA in the UK. This partnership was aimed at tokenizing millions of Real-World Assets (RWA) on the XRP Ledger in the next year.
Furthermore, Long revealed that Ripple is set to explore the possibility of an XRP Exchange-Traded Fund (ETF) in 2025. This development follows the substantial regulatory clarification received from the US courts last July regarding XRP’s classification.
It was ruled that the digital asset is not to be classified as a security but as a commodity. This clarity has opened up new business avenues for Ripple in the United States.
Brad Garlinghouse, the CEO of Ripple, has shown optimism about the new digital asset, considering it a potential competitor to Ethereum (ETH) and Bitcoin (BTC) in the market.
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