Exploring Ripple's New Stablecoin Ripple USD (RLUSD)

Summary

In this episode of Block Stars Ripple's podcast, host David Schwarz, Ripple's CTO, interviews Monica Long, Ripple's President, about Ripple's venture into the stablecoin market. They discuss the strategic importance of launching a stablecoin, its role in Ripple's vision for decentralized finance, and the regulatory compliance necessary for its success. The conversation also touches on the potential for real-world asset tokenization and the integration of traditional financial systems with blockchain technology. Long emphasizes Ripple's commitment to compliance and the future of financial innovation.

Takeaways

• 🚀 Ripple is launching its own stablecoin, a significant strategic move that aligns with their vision for the future of finance and the Internet of Value.
• 🌐 The stablecoin market is massive, with a current market cap of over $100 billion and projections to reach nearly $3 trillion in the coming years.
• 🔄 Ripple's stablecoin aims to provide reliable on-ramps and off-ramps for the XRP Ledger, enhancing the efficiency of transactions and payments.
• 🏦 The launch of Ripple's stablecoin is part of a broader effort to support developers and build a robust ecosystem on the XRP Ledger, including features like auto-bridging.
• 📈 Ripple sees stablecoins as key enablers for decentralized finance (DeFi), providing a necessary counter-asset for various financial applications.
• 🔒 Regulatory compliance is paramount for Ripple's stablecoin, with a focus on adhering to strict regulations and maintaining a 1:1 backing with USD cash or cash equivalents.
• 🌍 Ripple's stablecoin fits into the company's cross-border payments vision, offering customers more options and flexibility in their payment flows.
• 💡 The introduction of Ripple's stablecoin does not diminish their commitment to XRP; rather, it is expected to increase trading volume and liquidity on the XRP Ledger.
• 🔮 Monica Long, Ripple's President, is bullish about the future of Ripple and the industry, emphasizing the importance of integrating blockchain with traditional financial systems.
• 🤝 Ripple is focused on building a compelling ecosystem that includes various digital assets and use cases to attract users and foster growth in the DeFi space.
• 🔄 The company is watching regulatory developments, especially in Europe with the MiCA regulation, to ensure they meet licensing requirements and maintain compliance.

Q & A

What is the purpose of Ripple's podcast 'Block Stars Ripple'?

The purpose of 'Block Stars Ripple' is to feature leaders and developers in crypto and blockchain to discuss the latest trends, technologies, and real-world problems being solved by these innovations.

Who are the hosts and guests of the podcast episode discussed in the transcript?

The host of the podcast is Ripple's CTO, David Schwarz, and the guest is Ripple's President, Monica Long.

What is the significance of Ripple launching its own stablecoin?

The launch of Ripple's stablecoin is a strategic move that fits with their vision for the future of finance and the internet of value, providing a reliable and compliant stablecoin offering in a growing market.

What is Monica Long's role at Ripple?

As President of Ripple, Monica Long is responsible for the company's products, their commercialization, sales efforts, and initiatives to support developers building on the XRP Ledger.

What was the original vision for Ripple's XRP Ledger?

The original vision for XRP Ledger was to create a decentralized exchange with an efficient liquidity mechanism for different assets, facilitating efficient transactions, particularly in payments.

Why is the launch of the AMM feature significant for Ripple's stablecoin?

The AMM feature requires a diverse array of assets to function effectively, and Ripple's stablecoin can serve as a counter asset for every existing asset, enhancing the ecosystem's functionality.

How does Ripple ensure regulatory compliance for its stablecoin?

Ripple ensures regulatory compliance by obtaining the necessary licenses, such as money transmission licenses in over 40 US states and e-money institution licensing in Europe, as well as adhering to robust compliance procedures including AML checks.

What is the relationship between Ripple's stablecoin and XRP?

Ripple's stablecoin is not intended to replace XRP but rather to complement it, with XRP continuing to serve as a bridge asset within Ripple's ecosystem and benefiting from increased trading volume.

What are some potential use cases for Ripple's stablecoin in the future of finance?

Potential use cases include payments, especially in markets with volatile domestic currencies, off-ramping into local markets for crypto-native players, and facilitating financial use cases such as lending protocols.

How does Ripple view the integration of blockchain technology with traditional financial systems?

Ripple believes that integrating blockchain technology with traditional financial systems is crucial for the future of finance, emphasizing the need for connecting the old and new systems and working within regulatory frameworks.

What is Monica Long's outlook on the future of Ripple and the industry?

Monica Long is bullish about the next one to two years for Ripple, expecting to see the payoff from the hard work put into integrating blockchain with traditional finance and establishing sensible policies and regulations.

Outlines

00:00

🚀 Launch of Ripple's Stable Coin - A Strategic Move

In this introductory segment, the host, Ripple's CTO David Schwarz, welcomes Monica Long, Ripple's president, to discuss the company's venture into the stable coin market. Monica reflects on her journey with Ripple since 2013 and her role in product development and commercialization. The conversation highlights the strategic importance of Ripple's decision to launch its own stable coin, driven by market demand and the company's vision for the future of finance. The discussion also touches on the origins of Ripple and the XRP Ledger, emphasizing the company's long-standing commitment to creating efficient liquidity mechanisms for digital assets.

05:00

🌐 The Role of Stable Coins in Decentralized Finance

This paragraph delves into the significance of stable coins in the evolving landscape of decentralized finance (DeFi). It discusses the necessity of stable coins as reliable on-ramps and off-ramps for digital assets, and the importance of having a diverse array of assets for the functioning of automated market makers (AMMs). The conversation also addresses the regulatory compliance aspect of stable coins, with Ripple emphasizing the importance of adhering to strict regulations and maintaining the stability of the asset. The paragraph concludes with an exploration of how stable coins fit into Ripple's broader vision for cross-border payments and the digital asset ecosystem.

10:02

📈 Ripple's Compliance and Expansion in the Digital Currency Space

The focus of this paragraph is on Ripple's commitment to regulatory compliance as it expands its offerings in the digital currency space. It outlines the company's efforts to acquire necessary licenses and adhere to robust regulatory standards, such as those set by the New York Department of Financial Services (NYDFS). The paragraph also discusses Ripple's approach to maintaining the peg of its stable coin to the US dollar and the importance of this for the stability and reliability of the asset. Additionally, it touches on Ripple's vision for the future, including the potential for real-world asset tokenization and the integration of traditional financial systems with blockchain technology.

15:03

🔮 Envisioning the Future of Ripple and the Stable Coin Market

In this forward-looking segment, Monica Long shares her insights on the future of Ripple and the stable coin market. She acknowledges the challenges and the underestimated complexity of integrating blockchain technology with traditional financial systems. Monica discusses the importance of regulation in shaping the industry and the need for sensible policy to support innovation while protecting consumer interests. She concludes with an optimistic outlook on the next one to two years for Ripple, anticipating the fruits of the company's labor in product development, market integration, and regulatory compliance.

20:05

🤔 Listener Q&A and Monica's Reflections on Ripple's Journey

The final paragraph features a Q&A session where listeners pose questions about Ripple's stable coin strategy. Topics include potential plans for additional stable coins and the possibility of an XRP-Ripple USD pairing on the AMM. Monica confirms that Ripple is currently focused on its US dollar stable coin and hints at future demand for other types of stable coins. She also assures that Ripple remains committed to XRP and sees the stable coin as a complementary asset rather than a replacement. The segment ends with Monica's reflections on her time at Ripple and her enduring optimism for the company's role in shaping the future of finance.

Keywords

💡Stable Coin

A stable coin is a type of cryptocurrency designed to minimize price volatility by pegging it to a stable asset, such as the US dollar. In the video, the launch of Ripple's stable coin is a central topic, highlighting its significance in the crypto market and its potential role in the future of finance.

💡Cryptocurrency

Cryptocurrency refers to digital or virtual currencies that use cryptography for security and operate independently of a central bank. The script discusses the growth of the stable coin market within the broader cryptocurrency space and Ripple's strategic move to launch its own stable coin.

💡Blockchain

Blockchain is a distributed ledger technology that records transactions across multiple computers so that the record cannot be altered retroactively. The video talks about Ripple's venture into the stable coin market in the context of blockchain technology and its applications in finance.

💡Decentralized Finance (DeFi)

Decentralized Finance, or DeFi, refers to financial services that operate on blockchain technology without the need for traditional intermediaries like banks. The script mentions DeFi as an area where stable coins play a crucial role, particularly in the context of Ripple's stable coin and its potential impact on the DeFi ecosystem.

💡Ripple

Ripple is both the name of a company and its associated cryptocurrency (XRP). The video features a discussion about Ripple's entry into the stable coin market, emphasizing the company's vision and strategy in the context of digital currencies and blockchain technology.

💡XRP Ledger

The XRP Ledger is the open-source technology that powers the XRP cryptocurrency. The script discusses the ledger's role in Ripple's ecosystem, particularly in relation to the issuance of assets and the efficient liquidity mechanism it provides for different assets, including stable coins.

💡On-Ramps and Off-Ramps

In the context of cryptocurrency, on-ramps and off-ramps refer to methods of converting traditional currency into digital assets (on-ramps) and vice versa (off-ramps). The script mentions the importance of stable coins as reliable on-ramps and off-ramps for users engaging with DeFi applications.

💡Regulatory Compliance

Regulatory compliance in the video refers to adhering to government regulations, especially in the financial sector. The script highlights the importance of compliance for Ripple's stable coin, discussing the company's efforts to meet regulatory standards and ensure the integrity of its financial offerings.

💡Tokenization

Tokenization is the process of representing real-world assets as digital tokens on a blockchain. The script suggests that Ripple envisions a future where various financial assets, including real-world assets, are tokenized and traded on blockchain platforms, with stable coins facilitating these transactions.

💡Enterprise DeFi

Enterprise DeFi refers to the adoption of decentralized finance technologies by established financial institutions and enterprises. The video discusses Ripple's view on the integration of stable coins into enterprise-level financial services as part of the broader DeFi movement.

💡Liquidity

Liquidity in finance refers to the ability to buy or sell an asset quickly without affecting its price. The script mentions the importance of liquidity in the context of the XRP Ledger and how stable coins contribute to efficient transactions and market making within the ecosystem.

Highlights

Introduction of Ripple's own stable coin and its significance in the crypto and blockchain industry.

Monica Long's role as Ripple's president, overseeing products, sales, and developer support.

Ripple's strategic move into the stable coin market, aiming to address the demand for stable coin payouts in emerging markets.

The evolution of Ripple's vision for decentralized finance and the importance of stable coins in facilitating transactions.

The historical context of Ripple's involvement with stable coins, dating back to the early conceptualization of the XRP Ledger.

The necessity of stable coins for on-ramps and off-ramps in the blockchain ecosystem to avoid volatility.

Ripple's efforts in supporting developers through Ripple X and enhancing the XRP Ledger with new features and developer kits.

The need for reliable and compliant stable coin offerings in the market, and Ripple's intention to fill that gap.

The role of the stable coin in Ripple's cross-border payments vision and how it complements the existing offerings.

The importance of regulatory compliance for Ripple's stable coin, especially with the involvement of financial institutions.

Ripple's approach to maintaining the stable coin's peg and the operational focus on customer experience and compliance.

The impact of Ripple's stable coin on XRP and the clarification that it is not a replacement but an addition to the ecosystem.

Envisioning the future of finance with enterprise DeFi and the potential use cases for stable coins in various financial applications.

The potential for real-world asset tokenization and how Ripple's custody business and partnerships may play a role.

Ripple's focus on launching the USD stable coin first and the considerations for potential future stable coins.

The possibility of an XRP-Ripple USD pairing on the AMM and the openness of the XRP Ledger for such developments.

Monica Long's outlook on Ripple's future, the industry, and the stable coin market, emphasizing the importance of integration and regulation.

Transcripts

[Music]

welcome to block Stars Ripple's podcast

that features leaders and developers in

crypto and blockchain to discuss the

latest trends Technologies and the real

world problems being solved I'm your

host Ripple CTO David Schwarz today

we're embarking on an intriguing Journey

Into the Heart of Ripple's latest

Venture the launch of its very own

stable coin joining me for this deep

dive into the world of digital

currencies is none other than Ripple

president Monica long Monica it's

fantastic to have you with us today to

discuss Ripple's bold step into the

stable coin Market I'm honored to be

here David thanks for having me why

don't you tell our listeners a little

bit more about who you are I told them

already that you were Ripple president

what do you do what do I do

David I I've had the the privilege of

working with David since almost the

beginning actually uh I joined Ripple a

year into it it was the fall of

2013 so at that point you'd already

built and and launched The Ledger of

course predating establishing Ripple but

I mean the company had been around for a

year so I'm sure for you it had already

felt like a long time uh but but here we

are more than I guess 12 almost 12 years

later so I'm as president I'm

responsible for our products as well as

commercializing those products our sales

efforts and then also our initiative to

support developers building on extrap

Ledger it's been quite the journey

hasn't it yeah has it felt like a a

short time or a long time to you you

know it sometimes feels really short and

it sometimes feels really long it's it's

kind of it's kind of like a relativistic

thing sometimes it seems like we've been

doing this forever and other times it

seems like we've just barely started

it's quite an it's quite odd yeah I feel

the same way so let's talk about the uh

Ripple ripples entrance into the stable

coin Market this is a pretty significant

strategic move for us for a while you

know we've used a combination of Assets

in things like odl now Ripple payments

xrp Fiat stable coins we've built those

into our crossb solutions to provide the

best experience for our customers and in

Emerging Markets we've seen a demand for

stable coin payouts in Li of local fiat

currency can you tell people a little

bit about why we made the decision to

launch a stable coin and how it fits

with our vision for the future of

finance and the internet of value so uh

Man stable coins have I mean it's become

a massive Market within the crypto

Market in and of itself so today a

market cap of north of 100 billion $150

billion excuse me and the projections

are that this is a market that will

reach you know almost three trillion

dollars within the next handful of years

when I think about Ripple's foray into

launching its own stable coin I can't

help but think about the origins of the

company and and xrp Ledger and and this

goes back to you and and Arthur and Jed

originally conceptualizing The

decentralized Exchange on xrp Ledger and

the concept of I which I would say were

probably the first stable coins in

crypto would you is that fair to say

David I think so yeah yeah and like what

what I remember uh you know joining the

company you were very patient explaining

things to me uh at the Whiteboard and

what I remember was you would talk about

how the the vision was to create issued

assets onto The Ledger and built into

The Ledger was an order book that would

be a really efficient liquidity

mechanism for these different assets and

this is how the Ledger would ultimately

facilitate efficient transactions in in

particular payments so I I suppose it

just goes back to those fundamentals of

if we think that blockchains are here to

revolutionize finance and to create a

new future of decentralized Finance you

need to have representations of

currencies on blockchains so it's that

fundamental like to to make

decentralized Finance happen you you

need these stable coins this is your

show so I don't mean to turn you into

the

guest but yeah what like how were you

originally thinking about stable coins

and their role on The Ledger I think in

the early days I think we realized that

there had to be onramps and off-ramps

there had to be some way to get money

onto The Ledger that didn't necessarily

involve like buying a volatile asset or

committing to like a new form of money

there had to be you know I should say a

new like unit of account if if the only

way on The Ledger was to buy a a

volatile digital asset then there was no

value for first of all there was no

value in digital assets at the time

right they were all extremely low in

value so there would be no way that you

could do like large payments or

Enterprise payments I think over time

the vision has changed a little bit that

that it's still important as on-ramps

and off ramps it's still important to

have an alternative to digital assets

that are volatile but I think an a view

now is that if defi is going to work it

can't be all digital assets and it also

can't all be one stable coin because if

we're going to build these decentralized

permissionless public blockchains and

the assets on them that are controlled

that kind of defeats the point of them

being permissionless so the idea I think

today is that these are def these are

like key defi

enablers yes and this is this is what

we've come to for a few years now we've

had a concerted effort behind developer

relations and supporting developers

through Ripple X lots of programs you

know new development work on the core

Ledger itself adding features and also

developer kits Around The Ledger so

we've put all of that effort in and

ultimately it it's a bit chicken in the

egg to get developer momentum on extrap

Ledger which we are seeing but to really

see that flywheel pick up more momentum

you need to have high quality assets in

particular right now d does need onramps

and off-ramps that are reliable and

efficient so that's that's mostly been

in the form of stable coins we we also

see the need for the world of crypto to

have reliable compliant stable coin

offerings and you know the two that have

been most prominent uh usdc and usdt

they've been around for a while but we

do think that there's uh space and

opportunity and and the market kind of

needs to see more you know high quality

offerings so that's where we come in

that and that that's on X Ledger and

David you had leading into the question

of you know why now why is has Ripple

been thinking about this for a long time

and you mentioned that we have used

stable coins and a mix of different

tokens is part of our payments offering

so it's clear that you know using stable

coin for payments that you know there is

a use case there and so it also serves

the set of commercialized offerings that

we've built around

payments yeah it does I I think there

are a lot of people who were a little

surprised by the timing there's a lot of

people who said that we should have done

it a long time ago but I think one of

the things that's that that makes now an

important time is the launch of the amm

feature an amm doesn't work if all you

have is one great asset you need like a

diverse array of assets for it to you

can't make markets between one asset

right you need you need an array of

assets and of course the rebel stable

coin is a potential counter to you know

counter asset for every existing asset

and I think another one is the lending

protocol like it doesn't make sense to

have loans denominated like for a very

small number of people they might want

to borrow you know denominated Bitcoin

or their xrp but most people if you owe

money you want it Den nominate it in

dollars and you want to pay it back in

dollars because otherwise you're in a

sort of a you're weirdly vulnerable to

the volatility in the ecosystem so how

would you say the stable coin fits in

with h the crossb payments vision and

the digital asset Vision yeah so for our

payments customers we we've supported

various tokens in the payment flow of

course xrp as a bridge asset in that

position for xrp doesn't change

in our view especially as more and more

types of assets get tokenized on

blockchains and there's a need for

efficient liquidity between you know

what will increasingly become a a longer

and longer tale of different types of

assets even amongst the currencies you

know there'll be different issuers of

different currencies and the more that

transactions happen especially right on

Ledger with the with the decentralized

exchange there'll be more and more

demand for xrp as a bridge asset that

will continue but for stable coins that

you know there's different use cases

where for example a beneficiary might be

in a market where they would prefer to

receive payment in a US dollar stable

coin than in their local currency you

know these are markets with very

volatile domestic currencies so so

that's for like one example where we see

more of a need for it and I would say

too that the the other kind of broad use

case we see is there there's incre more

and more interest in the network of

off-ramps that we've built over the

years so through our payments Network we

can support off- ramping into 70

different countries and and currencies

and so even for crypto native players

that you know maybe they are dealing

with in defi a defi application there's

this use case to offramp into a local

market one of the things that I find the

most interesting about stable coins is

that they are sort of like a Regulatory

Compliance touch point for defi people

use stable coins for all manner of very

Loosely regulated functions they use

them like on ethereum they use them on

The xrp Ledger for things like the amms

while the stable coin itself is subject

to strict regulation Ripple can Ripple

has reg restrictions on who they can

issue the stable coin to who they can

redeem presumably it will be distributed

in part by exchanges who have to know

their customers and comply with you know

anti-money laundering what's the

Regulatory Compliance from Ripple's

point of view for the stable coin

compliance is something that like you

said it's going to be Paramount

especially if we see more Enterprise

users of stable coins and of blockchains

uh for for financial use cases it's

something you can't compromise on it has

to be you know rock solid airtight and

that's something that we've always

prioritized compliance and security

Above All Else and and the things that

we build and ship so this is no

exception the way that we're entering

the market is you know one ensuring that

we have the proper licensing and with

that that we're you know adhering to

what regulations we need to adhere to so

with the stablecoin you know here in the

US we have money transmission licenses

in more than 40 States we also set about

acquiring standard custody which is a

registered Trust Company with the New

York DFS New York DFS is widely regarded

not just in the US but internationally

as very robust regulator so we're

already building toward the DFS and

Trust Company requirements as we go

through that you know closing the

standard custody transaction so my point

being is like you know we're holding

kind of the gold standard in mind in how

we're building and how we will be

regulated of course overseas we also

have applied for e-money institution

Licensing in Europe as well as uh we we

have the major payment institution

license in Singapore and also have

applied or received virtual asset

service provider Licensing in Europe and

other places in the Middle East so

licensing is is prong one and then prong

two is also just you know the compliance

procedures that we will Implement you

know of course any customer that we're

on boarding any business will go through

our know your customer AML onboarding

process and you know we also have a you

know a whole robust compliance operation

on the mint and burn side of the stable

coin and and I think architecturally the

fact that it's Ono one backed with

actual USD cash or cash equivalents like

treasuries is important yes super

important that's that's part of the DFS

uh requirements yes one to one backed in

US

dollars so one question that I hear a

lot is what the Ripple stable coin means

for xrp and like is does this reflect

some reduction in our commitment to xrp

or is this a replacement for xrp and I

think obviously the answer to that is is

no I mean we want there to be more in

credible assets on the decks we want

trading volume you know we think that

the that xrp has a unique role on the

decks as a bridge asset features like

Auto bridging and we think that you know

more volume on The xrp Ledger is a good

thing you know both for xrp and for the

ecosystem yeah absolutely it goes back

to kind of like where we started the

conversation where we think of you know

our thesis of where we see a lot of

utility for xtrp Ledger is financial use

cases one of the original use cases it

was really it or it has been Best in

Class at since the beginning is payments

and you know having different currencies

represented on Ledger means just more

possibilities for not just payments but

other types of financial use cases and

we also especially US dollar stable

coins right now it's I mean it's clear

if you look at defi as a whole category

you know a lot of the total value locked

is in USD Stables so it's a really

critical piece of infrastructure is

actually a way to look at it uh for on

andof ramps to make any Ledger more

useful in the case of xrp Ledger and xrp

we really think that it will it will

facilitate only you know more usage and

more

liquidity yeah as Ripple expands its

footprint in the digital currency space

particularly in what we've called

Enterprise defi how do you envision the

adoption of stable coins U fitting in

that role you know for the future of

Finance both domestically and

internationally you know we've talked

about payments as a use case and you

touched on the lending protocol that's a

great example of a more forward-looking

use case that will that that we see

taking taking hold on xrp Ledger I think

that there'll be more kinds of financial

use cases are there any in particular

that you've been observing and watching

David that you or or that maybe you

always envisioned and uh we just haven't

seen yet I think real world asset

tokenization is is like is like another

one of those sort of core Enterprise

defi type uses I think some of the

others it's kind of early early to say

and I think there when you're buying and

selling things I think there are a lot

of people who aren't going to want

necessarily want to use digital assets

to do it there'll be digital assets

maybe providing liquidity but I think

like it's I think it's kind of a barrier

to entry if people have to move into a

digital asset in order to do things I

mean obviously I want digital assets to

be available and I think they'll be

competitive but I think that they just

like more options are good are good if

you look at like ecosystems that have

been compelling like the internet is a

compelling ecosystem you have probably a

phone that gives you internet access

everywhere you have internet access at

home you have internet access at work

and it's because it's a compelling

ecosystem that has so much value there's

no and any one thing launched on the

Internet is now available has a massive

target market so I think you need that

world where there's a compelling

ecosystem of all of these interesting

things that get people into that

ecosystem and then they'll pick the

things that work best for them and so

I'm I've never I've never felt that like

oh like this thing will take away from

this other thing I I think it's all it's

all a creative like right now we need to

just sort of grow the piie so that the

whole digital asset you know defi

ecosystem is compelling to people trying

to fight over is this thing going to

take market share away from it's just

it's just way too early we just need to

be better at everything so that people

find the ecosystem compelling totally

when you mentioned real world assets it

reminds me you know there's a there's a

number of companies in web they web 3

native who are building really

interesting platforms to serve financial

institutions with especially Capital

markets type use cases so tokenizing

equities bonds Etc and we are likewise

seeing demand for that kind of use case

from our custody business so the

different banks that we work with so you

could see the these even you know the

parts of Ripple kind of coming together

around real world asset tokenization

between you know our our custody

customers the banks as well as is some

of the Native web 3 developers who are

building really interesting applications

and might be able to bring more of the

demand side for some of these new types

of assets and like you said those

markets are used to dealing in pretty

simply you know dollars maybe Euro Yen

Etc so starting with a stable coin as a

base asset for those makes sense I think

it's time to take some listener

questions from

xor Anderson a n d r s o n are you

planning to launch more stable coins

after RL USD apparently they're calling

our stable coin RL USD like an RL for

example that's a good question it is a

good question we are right now really

focused on launching the F the US dollar

stable coin you know we don't take

lightly it's it's a big effort not just

from the technology side it's but I mean

more than anything the operation of it

making sure you know that we're holding

the a tight line on compliance that

we're giving a good experience to our

customers with onboarding and you know

always always laser focus on maintaining

the peg uh stable coin's not very useful

unless it's stable so we'll be really

focused on that and also connecting it

with our demand side the use cases like

our payments flows we recognize that

there will be demand and use cases for

other types of stable coins in the

future I think what's developing in

Europe with micro regulation is is very

interesting of course that the main

piece of the micro regulation that all

stable coin issuers are paying attention

to is you know you need to be licensed

uh in the the issuer needs to be a

European licensed entity which yeah

we're we're certainly watching that

market yeah it is it is very small

compared to the USD market for some

reason so there's a question is just

whether all the effort is worth it given

the market size one more this is an easy

one go ahead I was just say I mean that

the market will continue to evolve and

develop I mean I don't know that anyone

would have guessed that two Us doll

stable coins would be the top assets on

the crypto charts at this uh stage but

they are it is bizarre isn't it so this

one last one is an easy one from truth

Seeker 79 Tru SKR 79 will Ripple have an

xrp Ripple USD pairing on the amm and

that one's easy because whether we

there's nothing we need to do for that

to happen once an asset is on The xrp

Ledger anyone can create an amm and if

nobody else does I certainly will

because that's like the most logical

thing to

exist all right we'll go to my favorite

segment I really love to do this because

my guests generally don't like it I

always ask people to bring out their

crystal ball and give their thoughts on

and feelings on where we are in this

journey and what lies ahead for ripple

you've been with ripple for a very long

time you've been right in the heart of

our product our communication

uh everything that we've been doing a

strategy can you give a sort of overview

of what you think is in store for ripple

the industry the stable coin market I'll

just give you the broadest possible what

do you see yeah I can see why uh your

guests don't generally like the the

question feels it feels it's a tall

order for anyone to ask and then coming

from you there's just this extra

pressure to impress no I'm kidding and I

hate when people do it to me so people

do all the time I know and I hate it but

we've worked together long enough I can

I could just uh I could just be open

here actually so when you say look in

the future I think about our past and

you and I were just saying it it's felt

like a short long time so in 2013 when

we were you know when I just started we

were talking about the use case the

technology and whatnot it felt right

there it felt so obvious that this is

the future of finance and the the hard

Works already been done cuz the Bitcoin

blockchain had been invented The xrp

Ledger had been invented and so then it

was just about well now now it's just

about you know productizing use cases so

in that moment it would have felt like

by now the you know it poof the future

of Finance web 3 would be the way of

Finance today and so in that way it's

taking much longer than I think what at

least I had expected in that moment when

I joined the company but then in

hindsight when I look backward I think

about well it really has been a short

time if you think about the aspiration

of Ripple and the industry overall to

create the next age of the internet the

next age of finance and what I think we

and probably everyone else in the

industry

underestimated was the hard work of

connecting blockchains to traditional

Financial rails which has to be done I

think the the way of going about it of

well out with the old and with the new

we're just designing new Finance purely

on blockchain I I don't think that's the

way of the future I don't think Ripple's

ever believe that so there's like the

bringing the rest of the financial World

along to arrive at the same conclusion

that we have of this is the future and

then to do the actual technical work of

integrating the old and the new systems

and then the additional thing that we

underestimate I think the rest of the

industry has too is regulation and just

the it's felt like a lot of thrash over

the years of how different governments

receive this

technology understandably wanting to

really protect consumer interests which

we do too but to find that way forward

of this is actual like let's put

together some sensible policy and

regulation where we can you know invent

and reinvent Finance in a way that's

helpful to people and brings down cost

and makes things a lot more efficient

that was long-winded mandering answer

but I just I'm really never more than

ever I'm more bullish about what the

next one to two years holds for ripple

because of the the payoff from all the

work we put in I certainly hope you're

right we've been on this journey for a

long time I'd like to thank my guest

Ripple president Monica long for joining

me today pleasure hosting you on block

Stars don't be a stranger I know you

won't this is probably the third time

we've spoken to each other just

today yeah exactly I can't be a stranger

that would be a problem we see a lot of

each other don't

we and a huge thank you to our listeners

as always for tuning in if you have any

questions you can reach out to me on

Twitter at Joel cat j o l k TZ and

remember to follow at Ripple xdev Ripple

xdev on Twitter I guess I have to call

it X now to keep up with the latest

industry news technical updates and cool

new developer projects from the

community see you around the blockchain

oh

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