Ripple Ventures into Uncharted Territory with Launch of RLUSD Stablecoin and Prospective XRP ETF
During a recent interview with Frank Chaparro on ‘The Scoop’, Ripple’s President, Monica Long, provided insight into the company’s upcoming launch of a stablecoin pegged to the US dollar, RLUSD, and discussed the potential for an XRP exchange-traded fund (ETF). This announcement comes on the heels of a crucial legal clarification last July by the US Courts, affirming that XRP is recognized not as a security but as a commodity. This regulatory clarity has opened up new avenues for business growth for Ripple within the US market.
Long emphasized that the decision to introduce a stablecoin stemmed from the requirements of Ripple’s current payment clients and banking partners. She highlighted the importance of stablecoins in enabling cost-effective and transparent transactions. The USD stablecoin is designed to enhance efficiency in major payment corridors with high liquidity, such as USD to EUR transactions, while XRP will continue to function as a bridge asset, especially in less liquid payment routes with higher costs.
Furthermore, Long underlined the synergy between stablecoins and XRP within Ripple’s ecosystem, each catering to distinct needs within the payment landscape. Ripple is leveraging its strong partnerships and commitment to regulatory compliance to ensure widespread acceptance and trust in its new stablecoin offering.
Looking ahead, Ripple is expanding its focus beyond payments towards offering comprehensive blockchain solutions for enterprises. Long explained this strategic shift as a response to new opportunities identified by the team, positioning Ripple as a provider of holistic enterprise blockchain infrastructure. This includes facilitating activities such as real-world asset tokenization for financial institutions and delivering end-to-end infrastructure for diverse financial services.
Despite recent legal victories, concerns remain regarding ongoing regulatory challenges in the US, particularly the SEC’s assertive approach to crypto regulation. Long acknowledged the supportive regulatory environments in countries like Singapore and Brazil, as well as the significant advancements in Europe with initiatives like the Markets in Crypto-Assets (MiCA) framework, fostering blockchain innovation.
Addressing the possibility of a US Spot XRP ETF, Long emphasized the importance of legal clarity surrounding XRP’s classification and highlighted the potential for an ETF given XRP’s non-security status and robust trading volumes. She expressed confidence in the case for launching an XRP ETF, buoyed by a court ruling last year that further strengthens the rationale for such a financial product.