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Crypto: Ripple's Stablecoin, the secret weapon for a spectacular rise in XRP

Fri 14 Jun 2024 ▪ 4 min of reading ▪ by Fenelon L.
Getting informed Event

At the XRP Ledger Apex Summit 2024, David Schwartz, CTO of Ripple, claimed that the future Ripple USD stablecoin (RLUSD) will be a tremendous asset to drive adoption and use of the native crypto XRP. This statement comes at a time when some observers are questioning the evolving role of XRP in the Ripple ecosystem with the imminent arrival of the highly anticipated RLUSD.

La crypto XRP prend son envol

Ripple’s RLUSD Stablecoin, the Missing Piece to Unlock XRP’s Full Potential

Ripple’s recent announcement of its intention to soon launch a stablecoin backed by the US dollar, the RLUSD, has sparked some concerns within the community, with some fearing that this newcomer might overshadow the native XRP token. However, at the XRP Ledger Apex Summit 2024, Ripple executives worked to dispel these unfounded apprehensions.

According to David Schwartz, Ripple’s CTO, the arrival of the RLUSD, far from threatening XRP’s position, will instead act as a catalyst to unlock its full potential and open new opportunities. He emphasized the close ties that will bind RLUSD to XRP, making their coexistence not only possible but highly synergistic.

Echoing this sentiment, Brad Garlinghouse, Ripple’s CEO, stressed that the RLUSD will be an accelerator for the XRP ecosystem as a whole. Designed and conceived to foster success for all stakeholders, this innovative stablecoin will greatly facilitate access and use of XRP by offering optimized entry and exit gateways.

The arrival of the RLUSD does not compromise our unwavering commitment to XRP. On the contrary, it will strengthen its unique position by allowing it to fully deploy its strengths to serve ever more varied and promising use cases.”

The Necessity of Stablecoins in the DeFi Ecosystem

The evolution of the DeFi space has highlighted the crucial role of stablecoins, which have become indispensable tools in certain scenarios. Schwartz explained that while volatile assets like XRP have their utility, stablecoins are essential for pricing, fund storage, and trading when participants wish to avoid market exposure.

Additionally, Automated Market Makers (AMMs) require at least two assets for trading and liquidity. This underscores the need for a variety of asset classes to effectively navigate the DeFi landscape.

The CTO of Ripple also noted that XRP will retain its privileged role as a bridge asset on the XRP Ledger (XRPL). Pathfinding always prioritizes XRP liquidity, and automatic bridging ensures that this liquidity is considered in transactions. The introduction of the stablecoin ecosystem will enable more use cases without undermining XRP’s position.

The forthcoming arrival of RLUSD is an opportunity for Ripple to solidify its lead and reaffirm its leadership in the crypto industry. Far from threatening XRP, this innovative stablecoin will be a powerful catalyst to unlock its full potential and open exciting new horizons.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.