In a reveal about the upcoming Ripple USD stablecoin (RLUSD), insights emerged from a conversation with a former Ripple employee who was deeply involved in the development of Ripple. On-Demand Liquidity (ODL) product. Tony Edward, host of the popular Thinking Crypto Podcast, shared exclusive details via X after speaking with the former employee at the Mainnet conference.
How XRP will benefit from RLUSD
The insider opinion on RLUSD suggests a positive synergy with XRP, contrary to fears of possible negative impacts. “The stablecoin will actually be beneficial for XRP as it will be combined with it,” the former employee paraphrased by Edward.
The former ODL developer added that he has “advocated for Ripple to launch a stablecoin years ago” because pairing with XRP will provide RLUSD with greater liquidity and help stabilize the stablecoin, thus avoiding depegging incidents. “XRP will help provide greater liquidity to the stablecoin as it is available on all exchanges. Additionally, this combination will help stabilize the stablecoin and prevent decoupling,” Edward paraphrased.
Furthermore, the introduction of RLUSD is set to unlock new use cases, particularly in the currency markets, expanding the reach and utility of Ripple. “They also stated that the stablecoin will open up new use cases in Forex and much more,” Edward wrote.
Despite growing excitement within the crypto community regarding the launch of RLUSD, Ripple recently issued a clarification, asking for caution and confirming that RLUSD is still in its private beta phase. “Ripple USD (RLUSD) is still in private beta and while it may see on-chain activity, it is not available yet. Beware of anyone claiming to distribute RLUSD. Stay tuned for the latest updates and stay alert against scams! Ripple stated in X.
In particular, the integration of RLUSD within the XRP Ledger (XRPL) is encounter technical obstaclesparticularly with the current inability of the ledger to support tokens with a 'recovery' function in your Automated Market Maker (AMM). “RLUSD is a stablecoin with recovery settings enabled. The XRP Ledger denies the use of tokens with this configuration on the AMM. Mods are in the works to help resolve this,” explained Vet (@Vet_X0), a renowned XRPL dUNL validator and co-founder of xrp.cafe.
Growing frustration with Ripple
Amid these technical challenges, there is a growing sense of frustration among the XRP community, particularly expressed by Jungle Inc Crypto News (@jungleincxrp). Concerns are rising about Ripple's readiness to launch and perceived shift in focus towards Ethereum, which could initially host RLUSD.
“Ripple’s RLUSD stablecoin will lack key capabilities on the XRPL, if it launches there. Reports suggest it could start on Ethereum. (…) The clear focus on Ethereum should be revealing. XRP is likely to do well in this bull run, but it is clear that it is no longer a top three 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 everything during the next bull run. Most price targets should drop. “This is not an asset to hold cycle after cycle.” Selva Inc voiced.
At press time, XRP was trading at $0.62.
Featured image created with DALL.E, chart from TradingView.com
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