How Ripple’s “RLUSD” Will Shake the Stablecoin Market: USDT, USDC Under Fire?

In the latest Thinking Crypto Podcast, Tony Edward interviewed Markus Infinger, SVP of RippleX, discussing Ripple’s upcoming stablecoin, RLUSD, and its potential impact on the crypto market.

With RLUSD’s introduction, Ripple aims to strengthen its position in the growing stablecoin sector. Offering RLUSD on both the XRP Ledger and Ethereum main chain enhances accessibility and flexibility for users and investors.

Competing with the Kings

Ripple’s RLUSD is set to compete with established stablecoins like USDT and USDC, with a focus on high trust and compliance. Ripple’s impressive track record and strategic partnerships position it well to take on this challenge. Additionally, Ripple is exploring tokenization projects on the XRP Ledger, collaborating with major asset managers to bring real-world assets on-chain.

The global stablecoin market cap is around $150 billion, with the total amount of US dollars in circulation ranging from 21 to 22 trillion dollars. Rather than directly competing with giants like Circle, Tether, and PayPal, Ripple is concentrating on carving out a significant share of the growing stablecoin market. The company believes that US dollar liquidity will continue to expand, viewing these dynamics more as co-option than competition.

Transforming Financial Markets with Blockchain

Infinger emphasized the transformative potential of blockchain technology in financial markets by reducing transaction times and increasing efficiency. He stressed the importance of collaboration with traditional financial systems rather than outright disruption. Ripple is confident that stablecoins, including RLUSD, will play a pivotal role in bridging the gap between traditional finance and the crypto world.

Regulatory Concerns

The podcast also addressed regulatory challenges, with Infinger noting the uncertainty surrounding stablecoins and market structure in the U.S. due to the SEC’s involvement. Although there are no immediate concerns, 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.

Ripple’s Compliance-First Strategy

Taking lessons from the SEC’s manipulative regulatory strategies, the company is launching the Ripple platform with a compliance-first mindset, in line touch with relevant regulators, and will continue to play by the book. They are also launching any of their products with a compliance-first mindset.

Ripple has introduced stablecoins as an alternative or addition to XRP, which in some use cases, works better. Ripple’s primary goal is to reduce financial friction for people, with businesses as their main customers.

By pairing XRP with Ripple stablecoin, predominantly issued on the XRP Ledger, Ripple can enhance its offerings and benefit the ecosystem in return.

Also Read : Ripple Fails to Attract the Bulls: How Long Will the XRP Price Consolidate Within a Narrow Range?

What do you think? Will Ripple’s strategy pay off? Share your thoughts.