“At one point, we made 20% of all USDC!” — Ripple CEO

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As a seasoned crypto investor with a knack for deciphering market trends and understanding the intricacies of digital currencies, I find Ripple‘s latest move with RLUSD highly promising. Having witnessed the ups and downs of XRP over the years, it’s refreshing to see a strategic expansion that doesn’t aim to replace but complement my trusted investment.

Ripple CEO, Brad Garlinghouse recently had an interview with eToro and he shared some significant updates about Ripple’s use of stablecoins. 

For quite some time now, Ripple has collaborated significantly with US-dollar stablecoins, notably the USDC. As Garlinghouse stated, “At one instance, we accounted for about 20% of the total USDC in circulation!

Garlinghouse articulated that Ripple has collaborated on stablecoins in several significant financial sectors, aiming to reduce costs and expedite transaction times for clients.

Additionally, he mentioned the recently introduced RLUSD, a new stablecoin developed by Ripple and backed entirely by U.S. dollar deposits. This stablecoin maintains a 1:1 value with the U.S. dollar, meaning that one dollar’s worth is equivalent to one RLUSD. The intention behind RLUSD, as stated by Ripple, is to offer a dependable and efficient method for digital transactions, primarily catering to businesses seeking swift and affordable payment solutions.

On December 10, 2024, the New York Department of Financial Services granted approval to RLUSD. A week later, on December 17, this digital currency was officially made available for trading on various platforms like Uphold, MoonPay, Archax, Bitso, and CoinMENA. In the year 2025, Ripple aims to incorporate RLUSD into its Payment Network to facilitate smooth cross-border transactions for businesses.

Currently, the introduction of RLUSD (Ripple’s new product) is causing a commotion in the market, which has resulted in an increase for Ripple’s native token, XRP. At present, the token stands at $2.26 after reaching a weekly peak of $2.70. Nevertheless, it’s worth noting that this month alone, XRP has experienced a significant jump of more than 100% due to the launch of RLUSD.

Regarding this increase, Garlinghouse made clear that RLUSD isn’t intended to supplant XRP; instead, it serves as a companion. XRP continues to function as the primary digital currency for cross-border transactions. On the other hand, RLUSD offers companies a stablecoin choice for cost-effective and effortless payments.

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2024-12-19 22:29