thecryptobasic.com
XRP community influential figure Eri Chan has highlighted the potential impact of Ripple’s RLUSD stablecoin strategy on XRP.
In a June 6 post, she emphasized that cross-border payment giant Ripple is a long-game player, and XRP holders should be patient enough if they want to reap their investment reward. Furthermore, the community leader identified a few steps that Ripple has taken with the RLUSD token and its enormous potential for XRP.
RLUSD on XRPL to Rival Ethereum’s with Smart Contracts
For one, native programmability is gradually coming to the XRP Ledger. Specifically, Ripple has progressed significantly in its quest to introduce smart contracts to the Ledger’s mainnet.
One of the closest to the quest is the launch of the XRPL Ethereum Virtual Machine (EVM) Sidechain. Ripple announced on June 30 that the sidechain has launched on the mainnet after years of development, enabling Ethereum-compatible smart contract programmability on the XRP Ledger.
Meanwhile, Chan emphasized that the actualization of this quest will be a game-changer for Ripple USD’s presence on the XRPL Ledger. Currently, over 68% of XRPL’s circulating supply is on the Ethereum network, accounting for over $391 million of the $485 million supply.
If smart contract features become native to the XRP Ledger, Chan noted that RLUSD will become a more competitive stablecoin, offering faster and cheaper settlements than on the Ethereum network. Notably, this would increase RLUSD minting and utility on the XRPL, thereby boosting XRP fee revenues and potentially impacting its price.
National Banking Charter: A Dual Oversight for RLUSD
Remarkably, Ripple applied for a national banking charter with the US Office of the Comptroller of the Currency (OCC) on June 2, paving the way for a potential dual regulatory oversight for the RLUSD stablecoin. For context, Ripple obtained a state-issued license from the New York Department of Financial Services (NYDFS) in December, and the OCC approval will birth a double regime for RLUSD.
Essentially, the XRP community influencer highlighted that federal oversight for RLUSD will enhance institutional confidence, enhance its use in national payment, and secure a Federal Reserve master account. She noted that these calculated RLUSD stablecoin steps from Ripple will unlock enormous potential for XRP.
Nonetheless, she urged enthusiasts to remain patient. According to her, these significant utility-focused steps will require more time to unfold.