RLUSD on XRP Ledger: A Game-Changer for Ripple and the Financial Ecosystem

The Stablecoin Market Landscape

For the past eight years, I've been a dedicated supporter and hodler of Ripple (XRP), prioritizing utility-based coins over Bitcoin or Ethereum, the two largest cryptocurrencies. To me, use cases are the most critical factor for any coin, currency, or reserve. I've consistently maintained that XRP has the potential to rank among the top three cryptocurrencies—or even claim the number one spot someday.

The rise of stablecoins like USDT, USDC, and BUSD has transformed the cryptocurrency market by offering price stability and utility for payments, trading, and remittances. However, despite their widespread adoption, these stablecoins often face limitations, such as high transaction fees, network congestion, and regulatory uncertainty. Ripple’s introduction of RLUSD on the XRP Ledger (XRPL) marks a pivotal moment in the stablecoin market, positioning it as a strong contender to disrupt existing systems, including SWIFT, while bridging the gap between traditional finance and blockchain technology.

Below, I outline the reasons for my conviction, referencing an article and videos I did over four years ago during the early days of COVID-19. Even after the market crash at that time, I remained steadfast?in?holding?XRP.

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Comparison of RLUSD and Existing Stablecoins

Advantages of RLUSD on XRPL

1. Ultra-Low Fees: RLUSD transactions cost less than a cent, far cheaper than Ethereum-based stablecoins and even competitive with Solana or Tron.

2. Rapid Settlements: Transactions settle in 3-5 seconds on the XRP Ledger, rivaling the speed of the fastest blockchains like Solana.

3. Scalability: The XRP Ledger can handle 1,500 transactions per second (TPS), ensuring scalability for global adoption without congestion.

4. Regulatory Compliance: With expected approval from the New York Department of Financial Services (NYDFS), RLUSD is set to become one of the most compliant stablecoins, reducing institutional hesitation.

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Ripple's Unique Strategy: Working With Banks, Not Against Them

Ripple's strategy is fundamentally different from many crypto competitors. Instead of attempting to disintermediate banks and financial institutions, Ripple partners with them to improve the efficiency of cross-border payments.

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Ripple's Bank Partnerships

Ripple has onboarded over 200 financial institutions globally, including major players like Santander, Standard Chartered, and SBI Holdings.

By providing an alternative to SWIFT, RippleNet enables banks to execute near-instant, cost-effective cross-border payments.

RLUSD complements this ecosystem by offering a stable, dollar-pegged asset for transactions, further reducing volatility concerns for financial institutions.

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SWIFT vs. RippleNet + RLUSD

Ripple's focus on interoperability with traditional banking systems and regulatory compliance makes it a viable alternative to SWIFT, which is often criticized for being slow, costly, and outdated.

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Why RLUSD is a “SWIFT Killer”

1. Efficiency: By reducing settlement times from days to seconds, RippleNet eliminates the need for pre-funded nostro/vostro accounts, freeing up billions in trapped capital.

2. Cost Reduction: RLUSD minimizes fees, making cross-border transactions far more affordable than SWIFT's traditional wire transfers.

3. Global Reach: With its extensive network of banks, RippleNet already provides the infrastructure for a SWIFT alternative, and RLUSD will accelerate adoption by adding a compliant, stable medium of exchange.

4. Regulatory Trust: Unlike many decentralized crypto projects, Ripple’s commitment to regulatory engagement ensures that RLUSD and its ecosystem are tailored to meet global compliance standards, appealing to both institutions and governments.

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Impact on XRP Price

Ripple’s RLUSD stablecoin will indirectly drive the adoption and price of XRP in several ways:

1. Increased Liquidity: RLUSD will act as a stable medium for transactions, but XRP remains the bridge asset for liquidity in corridors where fiat or stablecoins are unavailable. This dual role ensures that XRP's utility expands alongside RLUSD.

2. Higher Demand for XRP Ledger: As more institutions adopt RLUSD for cross-border payments, the XRP Ledger's transaction volume will surge, increasing demand for XRP as fees are paid in the native token.

3. Institutional Confidence: Regulatory approval for RLUSD enhances Ripple's credibility, indirectly boosting institutional interest in XRP as a compliant and scalable digital asset.

4. Strategic Use Cases: Ripple’s push into stablecoins complements its existing offerings like On-Demand Liquidity (ODL), creating synergies that will amplify XRP’s adoption and price.

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Broader Implications for Crypto and Stablecoins

Ripple's RLUSD and XRP combination represents a paradigm shift in digital payments:

For Stablecoins: RLUSD sets a new benchmark for compliance, speed, and cost-efficiency, challenging the dominance of USDT and USDC while offering banks a regulated alternative.

For Cryptocurrencies: Ripple’s strategy highlights how blockchain technology can integrate with, rather than disrupt, traditional finance, addressing regulatory concerns that hinder mass adoption.

For Global Finance: By solving inefficiencies in cross-border payments, RippleNet and RLUSD provide a compelling case for blockchain technology to replace legacy systems like SWIFT.

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The Ripple Effect

Ripple’s RLUSD stablecoin, built on the XRP Ledger, is more than just another stablecoin—it is the linchpin of Ripple’s strategy to redefine global payments. By aligning with regulatory standards, leveraging blockchain’s efficiency, and partnering with banks, Ripple positions RLUSD and XRP as the backbone of a next-generation financial ecosystem.

With RLUSD's pending launch and the proven utility of XRP, the stage is set for Ripple to not only compete with existing stablecoins but to challenge SWIFT and crypto alternatives as the preferred infrastructure for global payments. The combination of RLUSD's stability and XRP's liquidity will likely catalyze institutional adoption, pushing XRP’s price upward and solidifying Ripple’s leadership in the blockchain-powered financial?revolution.

These are the videos I did four years ago, for friends who were asking me all the time about Ripple. I also recorded this to minimise my speaking time on stage, with direct questions answered rather than chapter and verse explaining about the market, why Ripple and top movers/shakers. I hope you enjoy them:

https://youtu.be/PnJ2-ihv6GU?si=RoqUtmQz5n6LUZj-

https://youtu.be/PnJ2-ihv6GU?si=2GHtf-MMP7RL3539

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