Ripple CEO on partnership with BNY to serve as custodian of stablecoin

Summary

Ripple CEO Brad Garlinghouse discusses the company's new partnership with BNY Mellon, where the bank will serve as the primary custodian for Ripple's stable coin, RLUSD. Highlighting the growing trust in the crypto industry, Garlinghouse shares insights on Ripple's role in the stable coin market and its focus on bridging traditional finance with decentralized finance. He emphasizes the importance of compliance and regulation, noting Ripple's efforts to secure an OC license and advocate for industry-wide regulations. Despite its smaller market cap, Ripple sees significant potential for growth in the stable coin sector.

Takeaways

• 😀 Ripple has partnered with BNY Mellon to make them the primary custodian for its stable coin, RLUSD.
• 😀 Ripple CEO Brad Garlinghouse emphasized the importance of working with trusted and well-regulated partners to build trust in the crypto industry.
• 😀 The stable coin market is currently valued at $250 billion, and is expected to grow to between $1 trillion and $2 trillion in a few years.
• 😀 Ripple has been focused on solving the cross-border payments problem using stable coins and XRP for its institutional clients.
• 😀 Ripple's stable coin, RLUSD, recently passed half a billion dollars in market cap just six months after launching.
• 😀 The partnership with BNY Mellon is seen as a step toward greater industry trust, with Ripple aiming to bridge traditional finance and decentralized finance.
• 😀 Despite its smaller market position, Ripple is confident that the growth of the stable coin industry will support their market expansion.
• 😀 Ripple has applied for an OC (Office of the Comptroller) license and a Federal Reserve master account to enhance its regulatory standing.
• 😀 Ripple advocates for regulation in the crypto space, highlighting its commitment to compliance with over 60 global licenses.
• 😀 Garlinghouse emphasized that the crypto industry, including Ripple, does not aim to operate outside of regulation but rather to integrate crypto technologies with traditional finance.

Q & A

Why did Ripple choose to partner with BNY Mellon for its stablecoin custody?

Ripple chose BNY Mellon due to its long-standing reputation as a trusted and well-capitalized custodian, which helps build trust in the crypto industry. BNY Mellon is one of the most regulated and trusted partners in the financial industry, making it an ideal choice for Ripple's stablecoin custody.

What is the significance of Ripple's stablecoin, RLUSD, passing half a billion dollars in market cap?

Passing half a billion dollars in market cap signifies the growth and success of Ripple's stablecoin, RLUSD, which was launched only six months ago. This milestone demonstrates its increasing acceptance and the trust the market is placing in Ripple’s stablecoin.

How does Ripple's stablecoin compare to its competitors in terms of market size?

Ripple's stablecoin is small compared to some of its competitors, as the stablecoin industry is currently valued at around 250 billion dollars. However, Ripple's stablecoin is still relatively new, and the company expects significant growth in the coming years.

What is Ripple's vision for the future of the stablecoin industry?

Ripple envisions the stablecoin industry growing from 250 billion dollars today to between one and two trillion dollars in the next few years. This growth will be fueled by increased adoption, and Ripple plans to be a major player in this expanding market.

How does Ripple's institutional background contribute to its success in the stablecoin market?

Ripple’s institutional background allows it to bring a compliance-focused, regulated approach to the stablecoin market. Ripple has over 60 global licenses, which enables it to operate in various regions and establish trust with institutional clients.

Does Ripple need to obtain a banking license for its operations in the stablecoin space?

Yes, Ripple is pursuing an application for an OC (Office of the Comptroller of the Currency) license as well as a Fed master account. These licenses will enable Ripple to further integrate into the traditional financial system and work seamlessly with decentralized finance.

How does Ripple see the relationship between traditional finance and decentralized finance?

Ripple sees the future as a bridge between traditional finance and decentralized finance. Rather than crypto taking over traditional finance, Ripple focuses on integrating the best aspects of crypto, such as faster and cheaper transactions, into the existing financial system.

What is Ripple's stance on crypto regulation?

Ripple advocates for regulation in the crypto industry. They are actively working in Washington to push for regulatory clarity and have made efforts to apply for licenses such as the OC license to demonstrate their commitment to compliance and building trust in the space.

Why does Ripple emphasize its compliance and regulatory efforts?

Ripple emphasizes its compliance efforts to build trust in the crypto industry. By being a regulated, compliance-first company, Ripple aims to show that the crypto world can operate in a trusted manner alongside traditional finance.

What impact does Ripple believe its partnership with BNY Mellon will have on the broader crypto industry?

Ripple believes that its partnership with BNY Mellon will help foster more trust in the crypto industry by demonstrating that traditional, regulated financial institutions can work with decentralized finance companies. This collaboration is seen as a sign that the tides are shifting in favor of crypto, with potential for significant industry growth.