- RLUSD stablecoin bridges banks and Ripple’s XRPL, enabling regulated cross-border payments and institutional adoption.
- Ripple’s CEO defends XRP’s utility, emphasizing its legal clarity and broader financial use beyond illicit activity claims.
- Ripple’s vision combines RLUSD and XRPL to foster global financial integration, positioning XRP as a key bridge asset.
According to software engineer Vincent Van Code, RLUSD will act as a secure and regulated link between banks and Ripple’s payment system. Because it follows strict regulations, banks can safely hold RLUSD as part of their assets and use it for cross-border payments. At the same time, Ripple’s XRP Ledger will help convert different currencies smoothly using its built-in exchange and automated trading system.
RLUSD and Institutional Adoption
Ripple’s RLUSD stablecoin holds vast potential for major institutional use cases. Besides cross-border payments, institutions can adopt RLUSD for trade in critical assets such as oil, treasuries, and grains. Furthermore, independent companies can create and own their digital stablecoins. This model allows liquidity providers (LPs) to participate and generate consistent revenue. Consequently, Ripple is fostering an ecosystem where other businesses can replicate its success.
The overarching goal, however, is the global adoption of the XRPL. With XRP as the reserve and bridge token, Ripple aims to facilitate borderless financial integration. Moreover, this dual system—RLUSD for regulated front-end bank operations and XRPL for global conversions—positions Ripple as a transformative player in finance.
Ripple CEO Defends XRP Utility
Meanwhile, the conversation surrounding Ripple intensified during a 60 Minutes interview featuring Ripple CEO Brad Garlinghouse and former SEC official John Reed Stark. Garlinghouse stressed that XRP is not a security and called for clear rules and less regulation. He also pointed out that a federal judge had ruled that XRP isn’t automatically a security.
Stark, however, refuted this stance, claiming U.S. courts generally classify cryptocurrencies as securities. Garlinghouse strongly opposed Stark’s remarks on social media. He accused Stark of knowingly spreading misinformation and drew parallels between Stark’s rhetoric and SEC Chair Gary Gensler’s views. Additionally, he criticized 60 Minutes for failing to fact-check these claims thoroughly.
The exclusion of Ripple’s legal triumph in the segment raised eyebrows across the crypto community. Nevertheless, Garlinghouse maintained that XRP has utility far beyond illicit use cases, as critics often suggest.
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