How XRP Will Benefit From RLUSD

The insider's view on RLUSD suggests a positive synergy with XRP, contrary to fears of potential negative impacts. “The stablecoin will actually be beneficial for XRP

CryptoSlate has uncovered new details regarding the upcoming Ripple USD (RLUSD) stablecoin through a conversation with a former Ripple employee who was closely involved in developing Ripple’s On-Demand Liquidity (ODL) product.

The former employee, who spoke on the condition of anonymity, provided insights into RLUSD’s development, synergy with XRP, and potential use cases.

According to the insider’s view, the stablecoin will be beneficial for XRP, as it will be paired with it. This pairing will provide RLUSD with greater liquidity and help stabilize the stablecoin, thus preventing depegging incidents.

“XRP will help provide the stablecoin with greater liquidity since it is available on all exchanges. Additionally, this pairing will help stabilize the stablecoin and prevent depegging,” the former ODL developer said.

The former employee also noted that he has “advocated for Ripple to launch a stablecoin years ago” and that its introduction is a positive step for the company’s overall strategy.

Furthermore, the stablecoin is expected to unlock new use cases, especially in the forex markets, which will expand Ripple’s reach and utility.

“They also stated that the stablecoin will open up new use cases in forex and much more,” Edward wrote.

Despite the growing excitement within the crypto community regarding the RLUSD launch, which is evident in the recent price surge of XRP, Ripple has recently issued a clarification, urging caution and confirming that RLUSD is still in its private beta phase.

“Ripple USD (RLUSD) is still in private beta, and while you may see on-chain activity, it’s not available yet. Beware of anyone claiming to distribute RLUSD. Keep an eye out for the latest updates, and stay vigilant against scams!” Ripple stated on Telegram.

Meanwhile, the integration of RLUSD within the XRP Ledger (XRPL) is encountering technical hurdles, particularly with the ledger’s current inability to support tokens with a ‘clawback’ feature in its Automated Market Maker (AMM).

As Vet (@Vet_X0), 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 denied by the XRP Ledger to be used in the AMM. There are amendments in the works to help solve this.”

However, there are reports that RLUSD might be launched on Ethereum, which has sparked concerns among the XRP community members over Ripple’s priorities and the potential impact on XRP’s utility and value proposition.

Jungle Inc Crypto News (@jungleincxrp) expressed this sentiment, highlighting the lack of key capabilities for RLUSD on the XRPL and the shift in focus to Ethereum, which might host the stablecoin initially.

“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 many believed. XRP is a good asset, but not a great one. Sell it all during the bull run. Most price targets should be moved down. This isn’t an asset to cycle after cycle,” Jungle Inc added.

At press time, XRP was trading at $0.62, up 0.5% in the past 24 hours and down 11.5% over the last seven days.