DeFi
Can this new stablecoin disrupt the market and escape SEC control?
In the latest Thinking Crypto podcast, Tony Edward interviewed RippleX Senior Vice President Markus Infinger discusses Ripple’s upcoming stablecoin, RLUSD, and its potential impact on the cryptocurrency market.
With the introduction of RLUSD, Ripple aims to strengthen its position in the growing stablecoin sector. Offering RLUSD on both the XRP Ledger and the Ethereum mainchain improves accessibility and flexibility for users and investors.
How will RLUSD fare against USDT, USDC and others?
Additionally, Ripple’s RLUSD aims to compete with established stablecoins like USDT and USDC, with a focus on trust and compliance. The company’s track record and strategic partnerships position it well to take on this challenge. Additionally, Ripple is also exploring tokenization projects on the XRP Ledger, collaborating with leading asset managers to integrate real-world assets on-chain.
That being said, the global stablecoin market cap is around $150 billion, with the total amount of US dollars in circulation being $21-22 trillion. Therefore, Ripple is not focused on competing with big players like Circle, Tether, and PayPal, but rather on the growing market share of the Ripple stablecoin. The company believes that the liquidity of the US dollar will continue to grow, and it sees this dynamic more as co-optation than competition.
Infinger highlighted the importance of blockchain technology in transforming financial markets by reducing transaction times and increasing efficiency. He stressed the need to collaborate with traditional financial systems rather than disrupt them. Ripple believes that stablecoins, including RLUSD, will play a crucial role in this transformation, bridging the gap between traditional finance and the crypto world.
Regulatory concerns
The podcast also touched on regulatory challenges, with Infinger highlighting the uncertainty surrounding stablecoins and market structure in the United States due to the SEC’s involvement. While there are no immediate concerns, Ripple has committed to taking a compliance-focused approach, working with relevant regulators to ensure RLUSD adheres to all necessary guidelines. But Infinger expressed disappointment at the SEC’s role in stifling innovation, but remains optimistic about the future.
Ripple’s compliance-first mindset
Learning from the SEC’s manipulative regulatory strategies, the company is launching the Ripple platform with a compliance-first mindset, in line with relevant regulators, and will continue to play by the rules. It is also launching all of its products with a compliance-first mindset.
Ripple has already introduced stablecoins as an alternative or complement to XRP, and in some use cases, it works better. Ripple’s main goal is to solve financial friction for people, focusing on businesses as its primary customers.
Now, by pairing XRP with the Ripple stablecoin, primarily issued on the XRP Ledger, Ripple can do more and benefit Ripple in return.
Do you think Ripple’s strategy to dodge the SEC with a compliant stablecoin will succeed, will XRP suffer, only time will tell.
Read also : Ripple Fails to Attract Bulls: How Long Will XRP Price Consolidate in a Tight Range?