The post Ripple’s RLUSD vs. USDT: Can This New Stablecoin Disrupt the Market and Navigate SEC Scrutiny? appeared first on Coinpedia Fintech News
In the latest Thinking Crypto Podcast, Tony Edward interviewed Markus Infinger, SVP of RippleX, discussing Ripple’s upcoming stablecoin, RLUSD, and its potential impact on the crypto market.
With RLUSD’s introduction, Ripple aims to strengthen its position in the growing stablecoin sector. Offering RLUSD on both the XRP Ledger and Ethereum main chain enhances accessibility and flexibility for users and investors.
How will RLUSD face USDT, USDC, and others?
Moreover, Ripple’s RLUSD aims to compete with established stablecoins like USDT and USDC, with a focus on high trust and compliance. The company’s track record and strategic partnerships position it well for this challenge. Moreover, Ripple is also exploring tokenization projects on the XRP Ledger, collaborating with major asset managers to bring real-world assets on-chain.
Having said that, the global stablecoin market cap is around $150 billion, with the total amount of US dollars in circulation being 21 to 22 trillion dollars. Hence, Ripple is not focused on competing with big players like Circle, Tether, and PayPal, but rather on the growing market share of the Ripple stablecoin. The company believes that the US dollar liquidity will continue to grow, and they view these dynamics more as co-option than competition.
Infinger highlighted the importance of blockchain technology in transforming financial markets by reducing transaction times and increasing efficiency. He emphasized the need for collaboration with traditional financial systems rather than disruption. Ripple is confident that stablecoins, including RLUSD, will play a crucial role in this transformation, bridging the gap between traditional finance and the crypto world.
Regulatory Concerns
The podcast also touched on regulatory challenges, with Infinger noting the uncertainty around stablecoins and market structure in the U.S. due to the SEC’s involvement. Although there are no immediate concerns, Ripple is committed to a compliance-first approach, engaging with relevant regulators to ensure RLUSD adheres to all necessary guidelines. But Infinger expressed disappointment with the SEC’s role in stifling innovation but remains optimistic about the future.
Ripple’s Compliance-First Mindset
Taking lessons from the SEC’s manipulative regulatory strategies, the company is launching the Ripple platform with a compliance-first mindset, in line touch with relevant regulators, and will continue to play by the book. They are also launching any of their products with a compliance-first mindset.
Ripple has already introduced stablecoins as an alternative or addition to XRP, and in some use cases, it works better. Ripple’s primary goal is to solve financial friction for people, focusing on businesses as their primary customers.
Now by pairing XRP with Ripple stablecoin, predominantly issued on XRP Ledger, Ripple can do more and benefit Ripple in return.
Do you think Ripple’s strategy to dodge the SEC with compliant stablecoin will succeed, will XRP Suffer only time will tell.
Also Read : Ripple Fails to Attract the Bulls: How Long Will the XRP Price Consolidate Within a Narrow Range?