A recent inquiry has emerged regarding Ripple’s Stablecoin and its potential impact on the XRP ecosystem. Ripple executive Eric van Miltenburg has suggested that the stablecoin could actually enhance the XRP Ledger (XRPL) instead of diminishing it.
Questions have been raised about the role of XRP holdings in Ripple’s stablecoin backing, leading to clarification from Ripple’s CTO, David Schwartz.
Van Miltenburg, Ripple’s SVP for Strategic Initiatives, believes that the upcoming Ripple stablecoin could bring benefits to the XRP ecosystem. While some are concerned about the stablecoin overshadowing XRP, Van Miltenburg reassures that its launch on XRPL will ultimately benefit the ecosystem.
Drawing parallels to stablecoins on other blockchains like Polygon, Van Miltenburg suggests that this move could increase the total value locked (TVL) on the XRP Ledger, thereby enhancing trust in the blockchain.
However, members of the XRP community remain skeptical and seek clarification on certain aspects. In response, prominent XRP community figure Crypto Eri reached out to Ripple’s CTO, David Schwartz, to understand the role of XRP holdings in the stablecoin’s backing.
Schwartz clarified that currently, there is no native mechanism to “lock up” assets on XRPL. He explained that high-quality stablecoins can drive usage of other blockchains, leading to an increase in value locked. Schwartz also outlined potential functions for stablecoins on XRPL, such as providing a means for individuals to hold funds without exposure to crypto volatility and serving as assets for automated market makers (AMMs).
As discussions continue, stakeholders in the XRP community eagerly await further developments in the evolving landscape of digital assets.