How RLUSD Integration Could Propel XRP Price, Expert Insights
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Ripple’s RLUSD stablecoin aims to improve cross-border payments by integrating with XRP. Increased RLUSD adoption could boost XRP liquidity and reduce its supply through transaction fees. The upcoming RLUSD stablecoin of Ripple is creating quite a buzz in the XRP community. According to Brett, a crypto analyst on X, RLUSD can increase the functionality and adoption of XRP in cross-border transmissions. The potential of the stablecoin and how it will affect the XRP price has boosted the market sentiments even with regulatory issues pending. RLUSD intends to transform conventional cross-border transactions through innovative solutions. Current methods are correspondent banking networks and pre-funded nostro accounts which are expensive and not effective. To overcome these difficulties, Ripple plans to involve RLUSD and XRP. In real life, a bank will take the fiat currency and swap it for RLUSD, which is then swapped for XRP. The XRP acts as an intermediary asset for quick, inexpensive cross-border transactions. When the payment is made to the recipient, XRP is converted to RLUSD or the local currency of the recipient’s country. This process removes the need to hold foreign currency and decreases costs while increasing settlement times. Through the use of XRP’s liquidity, RLUSD offers an efficient and expandable means for interbank settlement, which in turn may increase the demand for XRP. Implications for XRP Liquidity and Scarcity The launch of RLUSD could increase the usage of XRP. As a bridge asset for RLUSD transactions, XRP will be under pressure from greater liquidity needs. This increase in usage is consistent with the hypothesis that the adoption of the XRP Ledger and RLUSD can bolster XRP’s price trend. Also, XRP’s deflationary model, the burning of XRP during transactions, could also come into play. Lack of supply coupled with increased demand may result in increased prices in the…
Filed under: News - @ December 8, 2024 6:26 pm