A former Ripple employee has shed light on how Ripple’s upcoming RLUSD stablecoin will support and enhance XRP rather than hinder it. These insights were shared during a conversation with Tony Edward, host of the Thinking Crypto podcast. Notably, the ex-employee was part of the team that developed Ripple’s On-Demand Liquidity (ODL) product, now known as Ripple Payments.
Advocacy for RLUSD and XRP’s Liquidity Boost
The former employee mentioned they had long encouraged Ripple to launch a stablecoin. When asked if RLUSD might negatively affect XRP, they dismissed that idea. Instead, they pointed out that RLUSD is expected to pair with XRP, which will benefit from greater liquidity since XRP is traded on nearly all crypto exchanges globally.
Related article: Ripple Burns 185 RLUSD Tokens as Stablecoin Testing Advances
The connection between XRP and RLUSD will also help stabilize the stablecoin, preventing de-pegging issues seen in other stablecoins. The former Ripple insider stressed that RLUSD
will open new doors in forex and other financial markets.
Community Fears Debunked
Some in the crypto community have argued that RLUSD’s introduction could harm XRP, claiming Ripple might shift from using XRP for cross-border payments to relying on the stablecoin.
However, prominent voices within the XRP community, including Ripple executives, have consistently refuted these claims. Ripple CTO David Schwartz addressed these concerns at the 2024 XRP Ledger Apex summit.
RLUSD Enhances DeFi Use Cases for XRP
Schwartz emphasized the growing role of stablecoins in DeFi, noting their importance in pricing and trading while avoiding market risks. He pointed out that effective DeFi participation requires multiple asset types and that liquidity continues to favor XRP. RLUSD, he stated, will increase XRP’s use cases without reducing its utility.
Related article: Ripple’s Stablecoin RLUSD Targets All Investors, Including Retail
Ripple CEO Brad Garlinghouse shared a similar view, noting that RLUSD will improve liquidity and support on-ramps, which will ultimately strengthen XRP’s growth. This directly counters concerns about RLUSD overshadowing XRP’s role. In response to the former employee’s remarks, many XRP community members expressed agreement.
Vet, an XRPL validator, highlighted that RLUSD is a clear benefit for the XRP Ledger and dismissed any arguments against it as baseless fear, uncertainty, and doubt (FUD). Although Vet acknowledged that having RLUSD earlier would have been ideal, he also noted that hindsight often makes things clearer.
