Ripple Shifts Focus to RLUSD Stablecoin, Eyeing DeFi Growth

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Ripple CEO announced that Ripple will prioritize RLUSD, over stablecoins like USDC and Tether for its On-Demand Liquidity (ODL) product. In a conversation with Thinking Crypto, Garlinghouse shared insights on this strategic decision, the growing potential of RLUSD in decentralized finance (DeFi), and Ripple’s future plans for an initial public offering (IPO).

Ripple CEO Brad Garlinghouse Tells All! RLUSD, XRP ETF, SEC, & IPO

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Topics:
– Vision for the #RLUSD Stablecoin
– #Stablecoin Regulations in the US & EU
– #XRP ETF filings and will the #SEC Block the XRP ETFs?
– Will #Ripple IPO in 2025?
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— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) October 17, 2024

Strategic Shift Aims to Boost Opportunities

Garlinghouse clarified that this shift will not disrupt customer operations but instead create new opportunities for Ripple. He expressed optimism that upcoming stablecoin regulations in the US would favor compliance-focused coins like RLUSD. This, he believes, will help Ripple solidify its position in the stablecoin market. He added that this move aligns with Ripple’s long-term vision of expanding its product offering and fostering innovation in digital finance.

Touching on the broader XRP ecosystem, Garlinghouse highlighted RLUSD’s potential role in DeFi projects beyond its immediate use in Ripple’s ODL. While he remained cautious about Ripple’s direct participation in yield-generating DeFi products, he acknowledged the significant opportunities within the ecosystem. He suggested that RLUSD could play a key role in future projects involving decentralized financial applications.

XRP ETFs and Regulatory Challenges

The conversation also covered recent XRP exchange-traded funds (ETFs) filings, which Garlinghouse noted with some surprise. He acknowledged market demand for such financial products but emphasized that the U.S. Securities and Exchange Commission (SEC) remains a major obstacle for the entire crypto industry.

Garlinghouse criticized the SEC’s inconsistent stance on XRP and other cryptocurrencies, accusing the agency of failing to provide clear guidelines and attempting to enforce non-existent rules. He said Ripple has been fighting hard against these regulatory challenges, which has strengthened the broader crypto community.

Ripple’s IPO Plans Not Immediate

Addressing Ripple’s plans for an IPO, Garlinghouse confirmed that the company has no immediate pressure to go public. Ripple’s financial strength allows it to wait for the right time, especially as it navigates its strained relationship with the SEC.