In a reveal about the upcoming stablecoin Ripple USD (RLUSD), ideas emerged from a conversation with a former Ripple employee who was closely involved in the development of Ripple’s on-demand liquidity (ODL) product. Tony Edward, the host of the popular Thinking Crypto podcast, shared exclusive details via X after speaking with the former employee at the Mainnet conference.
How XRP will benefit from RLUSD
The insider’s view on RLUSD suggests positive synergy with XRP, contrary to fears of potential negative impacts. “The stablecoin will actually be beneficial to XRP because it will be associated with it,” Edward paraphrased the former employee.
The former ODL developer added that he had “advocated for Ripple to launch a stablecoin years ago” because pairing with XRP would provide RLUSD with greater liquidity and help stabilize the stablecoin, thus avoiding unanchoring incidents. “XRP will help provide the stablecoin with greater liquidity since it is available on all exchanges. Additionally, this association will help stabilize the stablecoin and prevent depegging,” Edward paraphrased.
Additionally, the introduction of RLUSD is poised to unlock new use cases, particularly in the foreign exchange markets, expanding Ripple’s reach and utility. “They also said that the stablecoin would open up new use cases in Forex and much more,” Edward wrote.
Despite growing excitement within the crypto community regarding the launch of RLUSD, Ripple recently issued a clarification, urging caution and confirming that RLUSD is still in its private beta phase. “Ripple USD (RLUSD) is still in private beta, and while you see some on-chain activity, it is not yet available. Be wary of anyone claiming to distribute RLUSD. Keep an eye on the latest updates and stay vigilant against scams! » Ripple said on X.
Notably, the integration of RLUSD into the XRP Ledger (XRPL) faces technical hurdles, particularly with the ledger’s current inability to support tokens with a “recovery” feature in its automated market maker (AMM). “RLUSD is a stablecoin with recovery settings enabled. Tokens with this setting are rejected by the XRP Ledger for use in AMM. Changes are being made to help resolve this issue,” explained Vet (@Vet_X0), a recognized UNL XRPL validator and co-founder of xrp.cafe.
Growing frustration with ripples
Amid these technical challenges, there is a growing sense of frustration within the XRP community, particularly expressed by Jungle Inc Crypto News (@jungleincxrp). Concerns are growing over Ripple’s readiness for launch and the perceived shift in focus towards Ethereum, which could initially host RLUSD.
“Ripple’s RLUSD stablecoin will lack key features on XRPL, even if it launches there. Reports suggest it could start on Ethereum. (…) The clear focus on Ethereum should be telling. XRP will likely perform well during this bull run, but it is clear that it is no longer a top 3 chain like it once was. Ripple’s influence on XRPL is no longer as significant as many thought. XRP is a good asset, but not a great one. The goal should be to sell everything during the next bull run. Most price targets should be lowered. This is not an asset to keep cycle after cycle. Jungle Inc expressed.
At press time, XRP was trading at $0.62.
Featured image created with DALL.E, chart from TradingView.com
