Regulation
Ripple Explores New Horizons with RLUSD Stablecoin and Potential XRP ETF
Ripple CEO Monica Long, in an interview with Frank Chaparro on “The Scoop,” explained the company’s plans to launch a U.S. dollar stablecoin, RLUSD, and also discussed the potential for an XRP ETF. This follows significant regulatory clarity obtained by the U.S. courts last July regarding XRP’s status, not as a security but as a commodity, which has spurred new business opportunities for Ripple in the United States.
Long explained that the decision to introduce a stablecoin is driven by the needs of Ripple’s existing payment customers and banks, while highlighting the role of stablecoins in facilitating cost-effective and transparent transactions.
She explained that the USD stablecoin aims to optimize efficiency in major payment corridors with abundant liquidity, such as USD to EUR transactions. In contrast, XRP will continue to serve as a bridge asset, especially in more expensive and less liquid payment corridors.
Ripple Moves Beyond Payments to Broader Blockchain Solutions
She also highlighted that stablecoins complement XRP in Ripple’s ecosystem, which serves different needs in the payments space. Stablecoin development, with Ripple leveraging its strong partnerships and regulatory compliance to ensure the new offering is accepted and approved in the market.
Ripple aims beyond payments and offers broader blockchain solutions for businesses. Ripple’s president explained this strategic shift as the team identified new opportunities for Ripple to become a provider of holistic enterprise blockchain infrastructure. This includes enabling financial institutions to engage in activities such as tokenizing real-world assets and providing end-to-end infrastructure for various financial services.
Concerns over SEC regulatory stance
Despite Ripple’s legal victory, Long expressed concerns about ongoing regulatory challenges in the United States and the SEC’s aggressive approach to cryptocurrency regulation. Long said, “The clarity around XRP in particular has been very helpful, but the general temperament of the U.S. government, I mean the SEC, has not slowed down its war on cryptocurrencies; it has only accelerated.”
However, she also mentioned the positive developments internationally, where countries like Singapore and Brazil have implemented regulations favorable to crypto companies. Long added that countries like Europe with MiCA were a tremendous turning point, given the favorable environment for blockchain innovation in the regions.
The possibility of an XRP ETF
Regarding the potential US Spot XRP ETF, Ms. Long highlighted the impact of the legal clarification of the status of XRP and noted that with the clarified legal status of and supported, the prospect of launching an ETF seems logical. She also claimed that last year’s court ruling further strengthens the case for an XRP ETF.