David Schwartz, CTO of Ripple Labs, Provided Insights on the Company's Newly Launched RLUSD Stablecoin

Released this week, Schwartz highlighted in a video message via Ripple's official X account that Ripple USD possesses practical applications for users and developers.

The technology expert, David Schwartz, CTO of Ripple Labs, provided insights on the company’s newly launched RLUSD stablecoin.

Announced earlier this week, Schwartz highlighted in a video message via Ripple’s official X account that Ripple USD possesses practical applications for users and developers. He confirmed that this stablecoin is a reliable asset designed to showcase the potential of the XRP Ledger.

Advantages of RLUSD Stablecoin

Schwartz explained that the stablecoin offers both direct and indirect advantages within the XRPL ecosystem. A direct benefit, he said, is increased transaction volume as a result of users needing to convert fiat to RLUSD and then to XRP as a bridge asset for cross-chain transactions.

Moreover, he noted that the unique features of XRP could expand the accessibility of Decentralized Exchanges on the XRPL. These exchanges typically require liquidity in multiple assets, and the efficient atomic transactions enabled by XRP could be utilized to create new and innovative DeFi use cases.

“We’ll see more and more cross-chain transactions, which will require XRP as the bridge asset, leading to increased demand for both RLUSD and XRP,” Schwartz added.

Ripple USD (RLUSD) is introduced as a fully backed stablecoin on the XRP Ledger, enhancing functionality for developers on XRPL.

The RLUSD stablecoin, which was launched this week, showed slight fluctuations on global exchanges like Uphold and Bitso. Starting at an approximate price of $1.15, the stablecoin largely maintained its 1:1 ratio to the US Dollar.

Role of RWA and RLUSD

The CTO went on to mention the future of the tokenization market for Real World Assets (RWA). He predicted continued growth in RWAs and an increase in stablecoin demand, positioning RLUSD to dominate this space.

“The speed and low cost of the XRP Ledger make it easy to integrate into this new system. We can quickly and efficiently issue and redeem large numbers of stablecoins, and we can do so at a fraction of the cost of other blockchains,” Schwartz stated.

In conclusion, the technology expert asserted that the RLUSD stablecoin would continue to benefit from this ecosystem structure. Together with the inherent advantages of the XRP Ledger, such as speed, scalability, and low transaction fees, RLUSD is poised to play a significant role in the evolving landscape of digital assets.