Bitrabo Editorial
New insights into the Ripple USD (RLUSD) stablecoin have surfaced following discussions with a former Ripple employee who played a key role in the creation of Ripple’s On-Demand Liquidity (ODL) solution. Tony Edward, host of the Thinking Crypto Podcast, shared these exclusive revelations on X after his dialogue with the ex-employee at the Mainnet conference.
Benefits of RLUSD for XRP
The insider’s perspective on RLUSD indicates a promising relationship with XRP, alleviating fears of adverse effects. The former employee stated that “the stablecoin will actually be beneficial for XRP, as it will be paired with it,” according to Edward.
This ODL developer expressed having promoted the idea of launching a stablecoin at Ripple for several years, noting that the connection with XRP would enhance RLUSD’s liquidity and stability, thereby reducing the chance of depegging. Edward shared that “XRP will help provide the stablecoin with greater liquidity since it is available on all exchanges. Additionally, this pairing will help stabilize the stablecoin and prevent depegging.”
Moreover, the advent of RLUSD is set to create new opportunities, especially within the forex markets, broadening Ripple’s influence and functionality. Edward noted, “They also stated that the stablecoin will open up new use cases in forex and much more.”
As anticipation builds in the cryptocurrency community for the RLUSD rollout, Ripple has recently released a statement urging caution, clarifying that RLUSD remains in a private beta stage. They cautioned, “Ripple USD (RLUSD) is still in private beta, and while you may see on-chain activity, it’s not available yet. Beware of anyone claiming to distribute RLUSD. Keep an eye out for the latest updates, and stay vigilant against scams!”
Currently, the process of integrating RLUSD into the XRP Ledger (XRPL) is facing technical obstacles, particularly due to the ledger’s current limitations in supporting tokens with a ‘clawback’ feature via its Automated Market Maker (AMM). Vet (@Vet_X0), a noted XRPL dUNL validator and co-founder of xrp.cafe, clarified, “RLUSD is a stablecoin with clawback settings enabled. Tokens with this setting are denied by the XRP Ledger to be used in the AMM. There are amendments in the works to help solve this.”
Rising Discontent Towards Ripple
In light of these technical difficulties, a sense of frustration is growing within the XRP community, particularly expressed by Jungle Inc Crypto News (@jungleincxrp). There are rising concerns regarding Ripple’s readiness for launch and the indication that RLUSD might initially launch on Ethereum instead of the XRPL.
Jungle Inc noted, “Ripple’s RLUSD stablecoin will lack key capabilities on the XRPL—if it even launches there at all. Reports suggest it could start on Ethereum. […] The clear focus on Ethereum should be telling. XRP will likely perform well this bull run, but it’s clear it’s no longer a top 3 chain like it used to be. Ripple’s influence on XRPL is no longer as significant as many believed. XRP is a good asset, but not a great one. The goal should be to sell it all during the upcoming bull run. Most price targets should be moved down. This isn’t an asset to hold cycle after cycle.”
As of the latest updates, XRP was trading at $0.62.