XRP Price to Soar More? Legal Expert Breaks Down Why RLUSD Launch Will Fuel XRP Growth
Ripple is preparing to launch a new stablecoin, RLUSD, which is expected to be backed by the U.S. dollar. The new token is expected to receive regulatory approval from the New York Department of Financial Services (NYDFS) soon. The launch of RLUSD could provide Ripple with a new way to provide liquidity to its On-Demand Liquidity (ODL) partners, thus increasing its working capital.
The stablecoin RLUSD is expected to play a key role in Ripple’s global payment solutions, helping partners using Ripple’s ODL services to improve liquidity and efficiency. The launch is being closely watched by the XRP Army, who hope the move will further drive adoption of Ripple technology.
How will RLUSD affect the value of XRP?
There is speculation about how the launch of RLUSD will affect the value of XRP. Pro-XRP Fred Rispoli Shared his thoughts, explaining that any increase in usage of a blockchain network will lead to an increase in the value of its native token.
He cited Bitcoin as an example, where the network’s value is driven by its usage, scarcity and resistance to censorship. Rispoli said a blockchain’s value is tied to its adoption and usage, not just a supply cap, noting that increased network activity typically results in higher token values.
When asked why the use of XRPL, Ripple’s ledger, would increase the value of XRP, Rispoli explained that Bitcoin’s rise in value is due to its status as a scarce and secure form of currency. He also said that while the total supply of Bitcoin and XRP could theoretically change in the future, the focus should still be on how the network is used and the value that use brings to the ecosystem.
