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“RLUSD is more than a clone of USDC,” says Cochram.
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This stablecoin will unlock great potential for Ripple’s expansion.
The company Ripple Labs marked a historic milestone with the market launch of its RLUSD stablecoin.
As CriptoNoticias already reported, the financial product It is available from December 17 in 5 Bitcoin (BTC) and Cryptocurrency exchanges.
This release positions Ripple Labs as a competitor in a market where giants like Tether and Circle stand outthe issuers of stablecoins USDT and Blockchain/” target=”_blank” rel=”noreferrer noopener”>USDCrespectively.
However, for Adam Cochramcryptocurrency market specialist, the appearance of RLUSD has even greater importance because could mark a before and after in the traditional financial system. “Ripple quietly dropped a bomb and no one talks about it,” he says, metaphorically. He further explains:
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“While everyone is talking about the price of XRP, and rightly so, about its upcoming programmability updates. Ripple Labs launched RLUSD which is about to drastically change its ecosystem. I believe RLUSD is the Trojan horse to attract multi-billion dollar Forex markets to cryptocurrency networks, without the need to wait for sophisticated updates.”
Adam Cochram, cryptocurrency market specialist.
The specialist maintains that the stablecoin could be integrated into the banking infrastructure, providing solutions to improve the efficiency of international money transfers, reduce costs and transaction times, both inside and outside the Ripple ecosystem.
It is important to note that RLUSD operates in Ethereum/” target=”_blank” rel=”noreferrer noopener”>Ethereum and in XRP Ledger (XRPL), designed to be compatible with existing banking systems.
One point to note is that the currency maintains a 1:1 parity with the US dollar through a backup of deposits in the North American currency, short-term US Treasury bonds and other cash equivalent instruments.
In this way, it becomes an attractive asset for banks that seek solutions in cryptocurrency network technology but, at the same time, have to comply with strict financial regulations.
Adam Cochram, cryptocurrency market specialist. Source: Screenshot of Adam Cochram’s YouTube channel.
In this regard, Cochram highlights that the team Ripple is working to make RLUSD comply with the European Union (EU) Regulation for the Market in Cryptoassets (MiCA), unlike Tetherwhich decided not to conform to the norm.
Likewise, he maintains that “RLUSD is more than a clone of USDC”, but rather that it is more similar to the stablecoin of the company Paxos (USDP) because it was approved by New York Department of Financial Services (NYDFS) and is backed by real cash equivalents in US banks.
Cochram also emphasizes that the XRP Ledger network has the ability to tokenize real world assets (RWA) but, so far, it has not been very successful. “RWA tokens are issued by banks and institutions, but they don’t want an AMM that trades as the underlying currency, they want to be able to set the price in US dollars. Until the launch of RLUSD, that was not possible. The stablecoin will unlock Ripple’s great potential and allow it to attract more liquidity to its ecosystem,” he explains.
As CriptoNoticias already explained, the Automated Market Maker (AMM) is a protocol that allows the exchange of tokens on a decentralized platform without the need for a traditional order book. Instead, liquidity pools are created where users can deposit pairs of tokens.
This mechanism allows digital assets to be exchanged in a decentralized manner, using algorithms that calculate prices and manage transactions automatically.
The Trojan horse
Cochram’s analogy implies that the new financial product could be the key to Ripple introduces XRP, the native cryptocurrency of the XRP Ledger, into the banking system.
If the stablecoin is successful, it will increase the trading volume on the XRP Ledger and consequently increase the adoption of XRP for fee payments.
In addition to bringing more liquidity to the entire Ripple Labs ecosystem, It will generate upward pressure on the price of the cryptocurrency.
After doubting XRP for a long time, the specialist reveals that he has changed his mind after conducting an in-depth analysis and now recognizes the strategy deployed by the company. “It is one of the strongest movements that Ripple has made in recent years,” he adds.
Finally, he made reference to the large number of memes circulating on social networks about possible XRP quotes. “Memes about Ripple reaching prices of $5 or $10 may seem exaggerated, but when considering the opportunity in RWA exchanges that Ripple could enable, those figures could become realistic, thanks to the enormous value that these ecosystems represent,” he completes.
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