Ripple to Prioritize RLUSD Stablecoin for ODL Over USDC and Tether

• Ripple plans to leverage RLUSD over USDC for new ODL opportunities and growth.
• Stablecoin regulations could benefit RLUSD by enhancing Ripple’s market positioning.
• Despite SEC hurdles, Ripple remains financially strong, delaying its IPO decision.

Ripple CEO Brad Garlinghouse revealed the company will prioritize its own stablecoin, RLUSD, over USDC and Tether for its On-Demand Liquidity (ODL) product. In a talk session with Thinking Crypto, Garlinghouse discussed this strategic shift, the potential of RLUSD in DeFi, and Ripple’s plans for an IPO.

Garlinghouse explained that this change would not affect customer operations and in fact be creating new opportunities for the company. He also anticipates upcoming stablecoin regulations in the US to benefit compliance-focused stablecoins like RLUSD, which could strengthen Ripple’s position in the stablecoin market.

The Role of RLUSD in DeFi and the XRP Ecosystem

Discussing the broader XRP ecosystem, Garlinghouse hinted at RLUSD’s potential to play a role in DeFi projects beyond Ripple’s ODL. Though Garlington remained cautious about Ripple’s direct involvement in yield products, he acknowledged the opportunities available within the XRP ecosystem.

Read also: Ripple’s RLUSD Distribution Revealed: $34.8 Million on XRPL, $12.6 Million on Ethereum

The conversation then shifted to the topic of XRP exchange-traded funds (ETFs). Garlinghouse expressed surprise at the timing of recent XRP ETF filings but indicated that there is market demand for such products. However, he warned that the SEC continues to pose a significant obstacle for the entire industry.

Regulatory Challenges and the Path to a Ripple IPO

Regarding regulatory challenges, Garlinghouse was critical of the SEC’s stance on XRP, particularly its failure to provide clear guidance. He argued that the SEC has acted inconsistently and created unnecessary disruptions for the crypto market. 

Furthermore, he accused the SEC of attempting to enforce rules that are non-existent. Despite these challenges, Garlinghouse insisted that Ripple has fought hard against its legal battles, resulting in a robust crypto community..

The Ripple CEO addressed the firm’s potential delay in going public due to its strained relationship with the SEC. He added that since the firm is financially strong, it can delay going public.

Further, Garlington added that there was no pressure to initiate an IPO and stated that the company is focused on navigating the regulatory landscape. Interestingly, an IPO would take at least a year if pursued.