Ripple USD Gains Early Customer Commitments Ahead Of Launch

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As a seasoned crypto investor with over a decade of experience under my belt, I find myself intrigued by Ripple’s latest move towards launching their US dollar stablecoin, RLUSD. Having witnessed the evolution of the crypto market, I can confidently say that stablecoins are indeed becoming a significant trend in the payments industry.

Monica Long, President of Ripple, disclosed that their forthcoming US dollar-backed stablecoin, Ripple USD (RLUSD), has already garnered early pledges from customers before its debut. During her speech at the Singapore Fintech Festival, Long underscored that stablecoins are poised to explode as a significant force in the payment sector.

Ripple Is Waiting For Regulatory Approval

During an interview with Tanvir Gill on CNBC, Long highlighted the expanding market for stablecoins and their anticipated growth. She explained that while the total market value of stablecoins currently stands around $170 billion, it’s expected to surpass $3 trillion in a few short years due to increasing demand drivers like payments. “Ripple,” she added, is already processing over $70 billion through assets, indicating a significant trend for this application.

Long emphasized the growing trend among significant payment companies towards integrating stablecoins for transactions. She referenced Stripe’s recent purchase of Bridge as evidence, stating that traditional financial institutions are increasingly embracing stablecoins. In her words, “That shows a major player in payments is leaning towards using stablecoins for transactions.

When questioned regarding competition against established stablecoins, Long conveyed her confidence in the growth of the market rather than focusing on direct competition. She articulated, “I believe the market will significantly expand.” In our viewpoint, we possess the application; we have customers eager to utilize stablecoins for transactions, so we are confident that we can serve as an outstanding service provider.

Concerning the debut of RLUSD, Long stressed the significance of obtaining regulatory approval. In her words, “Although we’re operationally prepared for the launch of the Ripple US dollar [stablecoin], what matters most to us is securing approval from the regulators.” She also mentioned that the New York Department of Financial Services is currently assessing our trust application.

Long also addressed the potential for other fiat-backed stablecoins to gain prominence. “Since more stablecoins are pegged to the US dollar and most transactions of stablecoins happen in the US dollar, do you think that dollarization could be the way forward?” Gill asked. Long responded, “I believe so, and it comes back to use cases like payments where you think about traditional use cases and there’s real need for foreign exchange there. I do think that we’ll see new forms of fiat currency turned into stablecoins.”

In my research, I’ve observed a distinct inclination towards the adoption of USD-backed stablecoins, particularly within the Latin American market. However, I am convinced that as global financial landscapes evolve, we can anticipate broader acceptance and usage of various types of stablecoins.

After the occasion, Long expressed on X (previously Twitter) his continued emphasis on stablecoins within the industry: “Just back from an amazing week at Singapore Fintech Festival – both on and off stage, there was a lot of discussion about stablecoins. I chatted with Tanvir Gill on CNBC about the increasing interest (for example, LATAM is seeking USD-based stablecoins, but EUR and SGD could potentially establish their own presence in the market), and how Ripple USD (RLUSD) already has customers eager to use it once it’s publicly available.

At press time, XRP traded at $0.60.

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2024-11-12 14:11