Ripple President Monica Long explained RLUSD’s dual role alongside XRP for developers and payments on The Scoop podcast. When asked about RLUSD’s launch for cross-border transactions despite XRP’s existing functionality, Long clarified the unique benefits stablecoins offer. She emphasized Ripple sees both assets as complementary, serving payment and developer needs.
RLUSD and XRP in Payment Utility
In the payments context, Long noted instances where customers find it more cost-efficient to complete transactions in US dollars. She highlighted ample market liquidity for major corridors like USD/EUR, making a bridge asset like XRP unnecessary. Moreover, she pointed out that consumers on the XRP Ledger envisioned XRP as a neutral cryptocurrency for use as a bridge asset. From the early days of Ripple, the company has promoted XRPโs use case as a bridge asset for the future of the Internet of Value, where various assets are tokenized on-chain.
Related article: Ripple President Unveils New Initiatives at Money 20/20 Europe
Ripple sees XRP as essential for efficient cross-currency or cross-token settlements, particularly for long-tail assets and currencies. Long cited examples in regions like sub-Saharan Africa, Europe, and the Middle East where costs can be very high due to insufficient liquidity. In these scenarios, fees can exceed 10% of the payment, making XRP crucial for transactions.
RLUSD Serving Developers
Regarding developers, Long noted that the US dollar has been the on-ramp for the entire industry, serving as the starting point for buying cryptocurrency or other tokenized assets and trading. She explained that Ripple sees significant potential for the decentralized exchange (DEX) within the XRPL. For the DEX to be more valuable to developers, high-quality stablecoins are necessary.
Related article: Ripple CEO Clarifies Court Decision Amid Media Misinterpretations
Consequently, Long revealed that Ripple has been focusing more on DeFi, with USD stablecoins being a key component of that ecosystem. This latest commentary about the complementary role of RLUSD for XRP has attracted significant attention from the XRP community. Vet, a dUNL validator on XRPL, remarked on the interview, providing additional context.
In earlier interviews, Ripple executives like CTO David Schwartz emphasized that the forthcoming stablecoin would benefit XRP rather than diminish its utility. Overall, the dual role of RLUSD and XRP highlights Ripple’s strategy to enhance payment efficiency and developer utility within the ecosystem.
