Ripple President Monica Long recently shed light on the complementary roles of the blockchain-native asset XRP and Ripple’s newly launched stablecoin RippleUSD (RLUSD) in an engaging interview with Bloomberg. Addressing worries about possible competition between RLUSD and XRP, Long explained that XRP serves as the foundational asset of the Ripple blockchain, while stablecoins like RLUSD provide a supportive role in the financial ecosystem.
Long characterized RLUSD as a 1:1 dollar-pegged token, specifically geared towards facilitating seamless payments, especially in cross-border transactions. Her commitment to creating faster, cost-effective, and 24/7 payment solutions was evident when she declared, “RLUSD will play a pivotal role in realizing these goals.”
Highlighting the growing demand for dollar-based payment solutions, Long pointed out that Ripple serves a diverse clientele, including payment service providers, financial institutions, and banks. Notably, several major global banks that utilize Ripple’s asset tokenization services have started embracing RLUSD.
In outlining the significance of XRP, she emphasized its status as the core asset of Ripple’s public blockchain, crucial in enabling quick transactions. XRP functions as a bridge asset that facilitates diverse token exchanges while keeping blockchain transaction fees low. According to Long, XRP remains a fundamental component of Ripple’s ecosystem.
During the discussion, Long noted the impressive growth of stablecoins, describing them as essential connections between the fiat and blockchain worlds. She highlighted the current stablecoin market, valued at $150 billion, with projections indicating it could exceed $3 trillion in the coming years. Long stressed that regulatory compliance and trust are critical for stablecoin adoption, emphasizing that RLUSD operates under the strict regulations of the New York Department of Financial Services (NYDFS), which positions it as a reliable gateway for regulated financial institutions exploring the blockchain space.
Long also expressed her excitement regarding the potential approval of an XRP spot ETF in the U.S. She observed that cryptocurrency spot ETFs have been gaining momentum lately and expressed optimism that XRP could soon follow suit. “The launch of various cryptocurrency spot ETFs in the U.S. this year signals strong progress, and XRP is likely next in line,” she remarked.
As she looked ahead, Monica Long projected a significant year for the cryptocurrency market, fueled by increasing demand for stablecoins and enhanced adoption of blockchain solutions. Ripple’s payment business, which doubled last year, stands poised to benefit from the integration of RLUSD. The complementary use of XRP and RLUSD highlights Ripple’s strategy of bridging traditional finance with blockchain innovation, paving the way for wider adoption and growth in the crypto ecosystem.
