In an interview with Frank Chaparro on "The Scoop," Ripple President Monica Long discussed Ripple’s upcoming launch of a US dollar stablecoin (RLUSD) and potential plans for an XRP exchange-traded fund (ETF). This follows significant regulatory clarity received from US courts last July, defining XRP not as a security but as a commodity, opening new business avenues for Ripple in the United States.

Ripple’s Strategic Vision for RLUSD

Long explained that the decision to introduce a stablecoin responds to the needs of Ripple’s payment clients and banks, aiming to enhance efficiency in major payment corridors with ample liquidity, such as USD to EUR transactions. She emphasized that while XRP will continue to function as a bridge asset in less liquid corridors, stablecoins like RLUSD complement XRP by meeting different requirements in the payment landscape. Ripple has been developing the stablecoin in collaboration with its extensive partnerships and adhering to regulatory standards to ensure market acceptance.

Expanding into Enterprise Blockchain Solutions

Beyond payments, Ripple aims to evolve into a comprehensive enterprise blockchain infrastructure provider. Long highlighted new opportunities for Ripple in facilitating activities like tokenization of real-world assets and offering end-to-end financial service infrastructure. This strategic expansion is supported by Ripple’s investments in infrastructure, including blockchain connectivity with traditional financial systems, compliance capabilities, and custody services obtained through the acquisition of Metaco.

Challenges and Regulatory Landscape

While Long acknowledged the relief brought by the legal clarity around XRP, she expressed concerns about ongoing regulatory challenges in the US, particularly the SEC’s stringent approach to cryptocurrency regulation. She noted contrasting positive regulatory environments internationally, citing supportive frameworks in regions like Europe under the MiCA regulation.

Outlook for a US Spot XRP ETF

Discussing the potential for a spot XRP ETF in the US, Long underscored the significance of XRP’s legal classification and its long-standing market presence and high trading volumes on major exchanges like Coinbase. She described the court’s previous ruling on XRP as pivotal and logical grounds for considering an ETF, which could broaden XRP’s accessibility to institutional investors and further integrate it into traditional financial markets.

As of the latest update, XRP was trading at $0.47378.