In the latest episode of Block Stars, Ripple CTO David Schwarz engages in a comprehensive discussion with Ripple President Monica Long about the company’s strategic entry into the stablecoin market. Monica, a Ripple veteran since 2013, shares her insights on the company’s evolution and the significance of launching their own stablecoin to meet the rising demand in emerging markets.
The conversation begins with Monica recounting her journey with Ripple, highlighting her roles and responsibilities, including product development, sales, and supporting developers on the XRP Ledger. This backdrop sets the stage for a deep dive into Ripple’s latest venture.
The episode explores the rationale behind Ripple’s decision to launch a stablecoin. Monica and David discuss the historical context, tracing back to the early days when the concept of issued assets on the XRP Ledger was first introduced. They explain how stablecoins are now crucial for the functionality of decentralised finance (DeFi), providing stability and serving as essential on-ramps and off-ramps for users.
Compliance and security emerge as pivotal themes in the discussion. Monica elaborates on Ripple’s rigorous approach to regulatory compliance, including holding money transmission licenses in over 40 U.S. states and acquiring Standard Custody, a registered trust company with the New York Department of Financial Services (DFS). The episode also touches on Ripple’s international licensing efforts in Europe and Asia, underscoring the company’s commitment to maintaining high compliance standards.
Despite the introduction of a stablecoin, Ripple’s commitment to XRP remains unwavering. Monica and David clarify that the stablecoin complements XRP’s role in providing liquidity for various assets on the XRP Ledger. They envision a future where both stablecoins and XRP enhance the ecosystem’s overall utility and liquidity.
Looking forward, Ripple aims to expand its digital currency offerings, potentially introducing other fiat-backed stablecoins. The episode concludes with a discussion on the broader implications of stablecoins for real-world asset tokenisation and other financial use cases, highlighting Ripple’s vision for the future of digital finance.
