Introducing Ripple’s RLUSD vs. USDT: A Potential Market Game-Changer Facing SEC Evaluation
During the latest Thinking Crypto Podcast, Tony Edward interviewed Markus Infinger, SVP of RippleX, to discuss the upcoming stablecoin RLUSD by Ripple and its potential impact on the cryptocurrency market.
Ripple intends to bolster its position in the burgeoning stablecoin sector with the introduction of RLUSD. Offering RLUSD on both the XRP Ledger and Ethereum main chain aims to enhance accessibility and flexibility for users and investors.
Ways RLUSD Stack up Against USDT, USDC and other Stablecoin
In comparison to established stablecoins like USDT and USDC, Ripple’s RLUSD is positioned to compete with a focus on high trust and compliance, leveraging the company’s track record and strategic partnerships. Additionally, Ripple is exploring tokenization projects on the XRP Ledger, collaborating with major asset managers to bring real-world assets onto the blockchain.
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Ripple’s focus is not centred on competing with major players like Circle, Tether, and PayPal, but on claiming a growing share of the stablecoin market, considering the global stablecoin market cap is approximately $150 billion, while the total amount of US dollars in circulation is around 21 to 22 trillion dollars. Ripple views the dynamics as more of a co-option than competition and believes that US dollar liquidity will continue to grow.
Significance of Blockchain Technology
Markus Infinger emphasized the significance of blockchain technology in transforming financial markets, reducing transaction times, and increasing efficiency. He highlighted the importance of collaboration with traditional financial systems, and Ripple is confident that stablecoins, including RLUSD, will play a significant role in bridging the gap between traditional finance and the crypto world.
The Regulatory Challenges
The podcast also addressed regulatory challenges, citing the uncertainty surrounding stablecoins and market structure in the U.S. due to the involvement of the SEC. Ripple is committed to a compliance-first approach, engaging with relevant regulators to ensure RLUSD adheres to all necessary guidelines. Despite expressing disappointment with the SEC’s role in stifling innovation, Infinger remains optimistic about the future.
Embracing a Culture of Ripple Compliance First
Ripple is launching the Ripple platform with a compliance-first mindset, aligning with relevant regulators and emphasizing a commitment to playing by the book. As an alternative or addition to XRP, Ripple has introduced stablecoins, which are proving advantageous in certain use cases. The company’s primary focus is to solve financial friction for businesses and individuals, leveraging the pairing of XRP with Ripple stablecoin predominantly issued on the XRP Ledger.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
