Ripple CTO David Schwartz Details How RLUSD Could Boost XRP and Strengthen the XRPL Ecosystem

Ripple's Chief Technology Officer (CTO) David Schwartz, aka “JoelKatz”, has detailed how RLUSD could boost XRP and strengthen the XRP Ledger (XRPL)

David Schwartz, also known as “JoelKatz”, Ripple’s Chief Technology Officer (CTO), has outlined how the integration of RLUSD could boost XRP and bolster the XRP Ledger (XRPL) ecosystem.Highlighting the unique yet complementary relationship between the two assets, Schwartz reiterated XRP’s continuous role as a bridge asset to support users, developers and applications within XRPL.

In his recent tweets, Schwartz elaborated on how RLUSD fits into the XRPL ecosystem and the distinct functions served by XRP and RLUSD within the broader crypto market.

Schwartz’s tweets, translated into English, detail the integration of Ripple USD ($RLUSD) into the XRP Ledger, introducing a top-tier, fully-backed US dollar stablecoin. He further outlines how $RLUSD enhances functionality and opens new possibilities for developers building on XRPL.

Further into the thread, Schwartz also noted the XRP Ledger’s auto-bridging system, which utilises XRP as a bridge asset to facilitate trades between different assets in a streamlined manner.

As previously stated by Ripple President Monica Long, XRP is primarily utilised for international payments, while RLUSD serves the purpose of enhancing liquidity and enabling the tokenisation of real-world assets.

In other news, Ripple Labs has announced plans to integrate RLUSD into its global payment network, known as Ripple Payments, with the aim of increasing the speed and efficiency of cross-border transactions.

Lastly, Schwartz expressed optimism regarding RLUSD achieving significant adoption within the stablecoin market, despite its saturation and the presence of leading stablecoins such as USDT and USDC.

Introducing RLUSD: A Deep Dive into the New Stablecoin on XRP Ledger

As a fiat-collateralised stablecoin, RLUSD was launched on December 10 following approval from the New York Department of Financial Services (NYDFS). Backed by US dollar deposits, short-term US Treasury Bills and cash equivalents, the stablecoin is fully regulated and subject to monthly attestations of RLUSD’s reserves by third-party auditors.

According to Ripple, RLUSD boasts a market cap of over US$50 million, while data from CoinMarketCap reveals daily trading volumes of approximately US$80K. Designed to simplify cross-border payments, RLUSD facilitates seamless transitions between fiat and cryptocurrencies.

Interestingly, RLUSD was also launched on the Ethereum network, enabling users to access DeFi’s largest ecosystem and integrate RLUSD into decentralised applications (dApps). This expands the stablecoin’s reach and liquidity, while also making it compatible with Ethereum-based crypto wallets.