Recent revelations about the forthcoming Ripple USD (RLUSD) stablecoin have stirred significant interest within the crypto community. These insights originated from an in-depth conversation with a former Ripple employee who played a crucial role in the development of Ripple’s On-Demand Liquidity (ODL) product. Tony Edward, the host of the widely-followed Thinking Crypto Podcast, shared these exclusive details on social media after his engagement with the former employee at the Mainnet conference.
How XRP Will Benefit From RLUSD
The insider’s perspective on RLUSD portrays a positive synergy with XRP, addressing concerns about potential negative impacts. According to the former employee, the stablecoin will be advantageous for XRP since it will be paired with it. This pairing is expected to offer RLUSD enhanced liquidity and aid in stabilizing the stablecoin, thus averting depegging incidents.
Edward paraphrased the former ODL developer, who mentioned, “I have advocated for Ripple to launch a stablecoin years ago. The pairing with XRP will provide RLUSD with greater liquidity and help stabilize the stablecoin, preventing depegging incidents. XRP, being available on all exchanges, will significantly contribute to this goal.”
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Furthermore, the introduction of RLUSD is anticipated to unlock new use cases, particularly in the forex markets. This development will expand Ripple’s reach and utility. Edward noted, “The stablecoin will open up new use cases in forex and much more.”
Despite the growing enthusiasm surrounding the RLUSD launch, Ripple has recently issued a cautionary statement. The company confirmed that RLUSD is still in its private beta phase. Ripple advised, “Ripple USD (RLUSD) is still in private beta. While you may see on-chain activity, it’s not available yet. Beware of anyone claiming to distribute RLUSD. Stay updated and vigilant against scams!”
Technical Challenges and Solutions
The integration of RLUSD within the XRP Ledger (XRPL) is facing technical challenges, particularly with the ledger’s current inability to support tokens with a ‘clawback’ feature in its Automated Market Maker (AMM). Vet, a recognized XRPL dUNL validator and co-founder of xrp.cafe, explained, “RLUSD is a stablecoin with clawback settings enabled. Tokens with this setting are currently denied by the XRP Ledger to be used in the AMM. There are amendments in the works to address this issue.”
Growing Frustration With Ripple
Amid these technical challenges, there is a growing sense of frustration within the XRP community. Jungle Inc Crypto News has voiced concerns regarding Ripple’s preparedness for the RLUSD launch and the perceived shift in focus towards Ethereum, which might host RLUSD initially.
Jungle Inc expressed their concerns, stating, “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.”
At press time, XRP was trading at $0.62.
