In a interview With Frank Chaparro on “The Scoop,” Ripple President Monica Long explained the company’s plans to launch a US dollar stablecoin (RLUSD) and discussed the potential for an XRP exchange-traded fund (ETF) . This comes after securing significant regulatory advancements clarity of American courts last July regarding the status of XRP, not as a security but as a commodity, which catalyzed new business opportunities for Ripple in the United States.
Ripple’s Strategic Vision for RLUSD
According to Long, the decision to introduce a stablecoin is driven by the needs of Ripple’s existing payment and banking customers, emphasizing the role of stablecoins in facilitating profitable and transparent transactions. “The US dollar stablecoin aims to optimize efficiency in key payment corridors where liquidity is abundant, such as transactions between USD and EUR. In contrast, XRP will continue to serve as a bridging asset, particularly in more expensive and less liquid payment corridors,” Long explained.
She highlighted that stablecoins offer a complement to XRP in Ripple’s ecosystem, meeting different needs in the payments landscape. Development of the stablecoin is ongoing, with Ripple leveraging its strong partnerships and regulatory compliance to ensure the new offering is well-received and trusted in the market.
Notably, Ripple’s ambition extends beyond payments and into broader blockchain solutions for businesses. Explained at length about the strategic shift, “We have identified new opportunities for Ripple to become a holistic enterprise blockchain infrastructure provider.” 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.
This expansion is supported by significant infrastructure investments, including connectivity between blockchains and traditional financial rails, compliance features, and custody services acquired through Ripple. acquisition of the company Metaco.
Despite the relief of Ripple’s legal victory, Long expressed concerns about the current regulatory challenges in the United States, particularly in the face of the SEC’s aggressive stance on regulating cryptocurrencies. “The clarity around XRP in particular has been very helpful (…) (but) the general temperament of the US government, I mean the SEC, has not slowed down its war on cryptocurrencies; it’s only gotten faster,” Long said.
However, she also noted positive regulatory developments at the international level, where countries like Singapore and Brazil have implemented clear and favorable regulations for crypto companies. “Places like Europe (…) with the Micawas a tremendous turning point,” added Long, acknowledging the favorable environment for blockchain innovation in these regions.
Prospects for a Spot XRP ETF in the United States
Discussing the potential for a spot XRP ETF in the United States, Long highlighted the importance of legal clarification of XRP’s status. “XRP has been trading in the top 10 for how long, maybe its entire life and on major exchanges like Coinbase,” Long remarked. She further highlighted the unique position of and given its sustained high trading volumes, it makes sense to consider an ETF. as a reasonable next step.
An ETF would not only capitalize on XRP’s presence in the market, but could also attract more institutional investors, thereby expanding the asset’s accessibility and integrating it more deeply into traditional financial markets.
At press time, XRP was trading at $0.47378.
Featured image from YouTube, chart from TradingView.com
