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Ripple Expands Beyond XRP with Planned Stablecoin and Potential ETF

Published 27/06/2024, 14:00
© Reuters.  Ripple Expands Beyond XRP with Planned Stablecoin and Potential ETF
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Coin Edition -

  • Ripple is set to launch a US Dollar-backed stablecoin (RLUSD) and explore an XRP ETF.
  • Ripple’s priorities include launching a stablecoin and expanding partnerships.
  • Legal clarity boosts US operations, but concerns remain over SEC’s strict stance on crypto.

Ripple, the blockchain payments company behind XRP, is expanding its services with a planned U.S. dollar-backed stablecoin and potential exploration of an XRP-based Exchange-Traded Fund (ETF), according to company president Monica Long.

In a recent interview, Long highlighted the company’s refined approach to becoming an enterprise blockchain infrastructure provider. Last July, Ripple gained legal clarity from U.S. courts, confirming XRP’s status as a commodity, thus paving the way for its operational advancement within the United States.

Long explained that Ripple’s decision to launch a stablecoin stems from its goal to provide a cost-effective and seamless transaction experience for its existing payment clients and banks. She stated:

“The US dollar stablecoin is aimed at optimizing efficiency in major payment corridors where liquidity is abundant, such as USD to EUR transactions. In contrast, XRP will continue to serve as a bridge asset, particularly in more costly and less liquid payment corridors.”

Ripple provides connectivity infrastructure to several blockchain and traditional financial systems, facilitates payouts in over 80 markets, and offers custody services through its acquisition of Metaco. The company is now exploring new opportunities in asset tokenization, leveraging strategic collaborations and regulatory compliance to ensure market acceptance.

For the latter half of the year, Ripple’s priorities include launching the stablecoin, expanding partnerships, and enhancing its custody business to support the tokenization of real-world assets. Tokenization is increasingly significant, and Ripple aims to support this through its custody solutions.

Despite XRP’s legal victory, the Ripple president expressed concerns regarding the SEC’s strict stance on cryptocurrency, saying:

“The clarity around XRP specifically has been very helpful […] [but] the overall temperament of the US government, I mean the SEC, has not slowed down its war on crypto; it’s only accelerated”

However, she noted that Ripple has grown in regions with clear regulations, such as Europe, Singapore, Hong Kong, Brazil, and the Middle East. Long added that the introduction of MiCA, which provides improved cryptocurrency regulation, has been a turning point for Europe’s crypto market.

The post Ripple Expands Beyond XRP with Planned Stablecoin and Potential ETF appeared first on Coin Edition.

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