Ripple Stablecoin RLUSD Is A ‘Trojan Horse’ For DeFi And Banking, Claims Venture Capitalist

In his latest video analysis on YouTube, Adam Cochran, partner at Cinneamhain Ventures (CEHV), an activist venture capital firm, described Ripple’s newly launched stablecoin, RLUSD, as a “Trojan Horse” poised to transform both decentralized finance (DeFi) and traditional banking sectors.

Why Ripple’s RLUSD Is A ‘Trojan Horse’

Cochran emphasized the strategic significance of RLUSD, stating, “Ripple quietly dropped a bombshell and no one’s really talking about it but it could dramatically revolutionize the position of Ripple in the marketplace.” He elaborated that while the crypto community remains focused on XRP’s price movements and its upcoming programmability upgrades, RLUSD represents a fundamental shift in XRP Ledger (XRPL) ecosystem.

RLUSD differentiates itself from other stablecoins by adhering to stringent regulatory standards. Cochran highlighted, “RLUSD isn’t just another USDC clone; this is more into the original Paxos stablecoin that’s NYDFS regulated, custodian issued, backed by secure cash assets.”

The stablecoin is exclusively backed by real US cash equivalents held in US banks registered with regulators and subject to regular audits. This regulatory compliance ensures that RLUSD meets stringent monetary transfer licenses, including a Virtual Asset Service Provider (VASP) license, positioning it for use by EU exchanges and banks.

Unlike other stablecoins such as Tether (USDT), RLUSD is set to be issued on both the XRP Ledger and the Ethereum blockchain. Cochran pointed out, “Ripple is making sure they themselves capture it and can provide more value into the ecosystem.”

Cochran posits that RLUSD is integral to unlocking the vast multi-trillion dollar Forex markets on the blockchain without necessitating advanced technological upgrades. “This stablecoin is going to unlock the ability for real-world asset (RWA) issuers, Forex issuers, currency issuers, and other programs to be able to price on a native AMM their assets in the US dollar,” he remarked.

The introduction of RLUSD is expected to facilitate the pricing of assets in US dollars directly on the XRPL’s Go to Source to See Full Article
Author: Jake Simmons

Did you like this?
Tip BTC Newswire with Cryptocurrency