Ripple getting approval to launch a stablecoin like RLUSD from US regulators (such as the New York Department of Financial Services) could have significant positive effects on XRP, including:
1. Increased market confidence:
• Getting approval from a strong regulator like New York enhances Ripple’s credibility and increases investor confidence in its currencies, including XRP.
2. Increased demand for XRP:
• Ripple uses XRP as part of its cross-border payments network (RippleNet), and the use of the RLUSD stablecoin is likely to increase activity on the network, which could lead to increased demand for XRP.
3. Improved price:
• If the new stablecoin succeeds in enhancing Ripple’s payment systems, this could lead to increased use of XRP, which could positively impact its price in the market.
4. Strengthening the Ripple ecosystem:
• Launching the stablecoin will make the ecosystem more integrated and flexible, as RLUSD can be used alongside XRP in payments and remittances.
5. Increased institutional adoption:
• Large institutions tend to work with projects that have strong regulatory approval, and this may contribute to increased adoption of XRP within institutions that adopt Ripple technologies.
6. Competition from other stablecoins:
• RLUSD may compete with stablecoins such as USDT and USDC, which may strengthen Ripple’s position in the cryptocurrency sector and increase adoption of its technologies.
