How Ripple's upcoming stablecoin will 'complement' XRP | The Scoop Podcast w/ Monica Long

Summary

In this episode of 'The Scoop', host Frank Chapar interviews Monica Long, President of Ripple. They discuss Ripple's growth amidst the SEC lawsuit, the company's expansion from cross-border payments to a holistic enterprise blockchain infrastructure provider, and the recent launch of a USD stablecoin. Long highlights the importance of regulatory clarity, especially in markets like Europe and Singapore, where Ripple has seen significant growth. She also touches on Ripple's focus on tokenization of real-world assets and the potential for an XRP ETF, emphasizing the company's commitment to innovation and compliance in the blockchain space.

Takeaways

• 📈 Ripple's business is expanding beyond cross-border payments to become a holistic enterprise blockchain infrastructure provider.
• 🏛️ The US court's decision in July provided clarity that XRP, in itself, is not a security and this has helped Ripple's business to move forward.
• 🌐 Ripple has seen significant growth outside the US, particularly in regions with clear regulations like Europe, Singapore, and Brazil.
• 💼 The acquisition of Medici, now Ripple Custody, has allowed Ripple to offer custody services to banks and expand its infrastructure for payments.
• 🔄 Ripple has processed over $60 billion in payments, with a focus on corridors like Asia-Pacific, Europe, and Australia.
• 💵 The launch of a USD stablecoin by Ripple aims to complement XRP by providing a cost-efficient and stable option for payment flows, especially in major corridors with high liquidity.
• 💼 Ripple's customer base includes payment companies and large banks, with the latter being served through Ripple Custody.
• 🔗 Ripple's partnerships with central banks and established crypto companies position it to facilitate tokenization of real-world assets.
• 🌐 Ripple sees opportunities in the tokenization of a variety of assets, including money market funds and securities, driven by client demand and regulatory clarity.
• 📈 There's a growing interest from large institutions in tokenizing securities, indicating a shift towards embracing blockchain technology for financial innovation.

Q & A

What is the current status of Ripple's case with the SEC?

The US courts provided clarity that XRP, in itself, is not a security and that its use cases implement how businesses can move forward with the government's blessing.

How has Ripple's business focus evolved since the last discussion with Monica?

Ripple's focus has expanded from primarily serving cross-border payments to becoming a holistic enterprise blockchain infrastructure provider, capable of supporting various financial institution needs including payments and asset tokenization.

What infrastructure has Ripple built to support its payments business?

Ripple has built connectivity between blockchains and traditional financial rails, allowing it to support payouts in over 80 markets, and has also acquired a company called Medici to provide custody services, enhancing its infrastructure for payments customers.

What has been the impact of the SEC's stance on Ripple's business in the US?

While the clarity around XRP has been helpful, the SEC's aggressive enforcement approach has not slowed down, creating ongoing constraints for Ripple and the broader crypto industry in the US.

How has Ripple's business grown internationally compared to the US?

Ripple has seen significant growth internationally, particularly in regions like Europe, the Middle East, and Brazil, where governments have provided clearer regulations and a more welcoming environment for crypto businesses.

What are the main categories of Ripple's business lines?

Ripple's main business lines include its flagship On-Demand Liquidity product for payment companies, Ripple Custody for banks and large financial institutions, and Ripple X for developer engagement and innovation on the XRP Ledger.

Why did Ripple decide to launch a USD stablecoin, and how does it complement XRP?

Ripple views stablecoins and XRP as complementary. While XRP serves as a bridge asset for cross-currency or cross-token settlements, especially in less liquid markets, stablecoins can be used for USD flows where it's either customer preference or the most cost-efficient option.

What are the key factors for the success of a stablecoin according to Ripple?

Key factors for a stablecoin's success include stability, adherence to compliance and regulations, and trust in the reserve management, which Ripple aims to achieve through its regulated custodial services and focus on regulatory clarity.

How does Ripple plan to integrate the stablecoin into its existing business?

Ripple intends to initially focus on introducing the stablecoin to its licensed payment companies and banks, leveraging its existing relationships and business demand, and then expand to other areas such as its decentralized exchange and defi partnerships.

What other initiatives is Ripple focusing on for the second half of the year?

Apart from the stablecoin launch, Ripple is also focusing on expanding its enterprise blockchain infrastructure services beyond payments, supporting the tokenization of real-world assets through its custody product, and potentially exploring the launch of an XRP ETF.

What is Monica's perspective on the future of Ripple and the broader blockchain industry?

Monica believes in the potential of blockchain to revolutionize financial systems and sees Ripple's infrastructure as valuable for serving various enterprise financial use cases. She is also optimistic about the growing interest from large institutions in tokenization and the potential for regulatory clarity to further legitimize and grow the industry.