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January 11, 2025 by Arslan Tabish
- RLUSD achieves $100M daily trading volume, with Ripple aiming to establish it as a liquidity hub for traditional finance.
- Targeting DeFi leadership, Ripple integrates RLUSD into lending platforms, DEXs, and derivatives with a multi-chain approach.
- Inspired by Facebook’s scaling strategy, the platform leverages RippleNet and fintech partnerships to drive RLUSD adoption globally.
Ripple has recently released its new stablecoin, the RLUSD, and the token is already doing well with daily trading volumes of over $100 million. With the launch gaining the market’s attention, the community begins to wonder how it will affect XRP and the overall plan of Ripple. Austin King, a former Ripple employee, and co-founder of Omni Network provided some insights into the strategy of the platform.
Ripple’s strategy revolves around a core principle: liquidity drives adoption. King also notes that higher trading volumes make more platforms interested in integrating the asset, which in turn fuels more trading volumes. This fundamental idea is the basis of Ripple in respect of RLUSD.
RLUSD as Liquidity Hub
The first approach company is taking with the RLUSD is to market it as a Real-World Asset (RWA) liquidity source. The platform wants to invite traditional finance companies and RLUSD is to provide liquidity for these companies’ activities. This is because; RLUSD has been integrating with these companies based on the current policy environment as well as the future policy environment in the United States. Stablecoin is powered by XRP in the center of this initiative, which provides liquidity for the same.
Source: Austin King
The second focus is on market leadership in DeFi. The compnay is intending to integrate RLUSD widely within the DeFi, in lending and borrowing services, DEXs, and derivative products. The platform is adopting a multi-chain approach for the first time and uses the XRP Ledger as the base and explores possibilities of integration with other blockchains.
Source: Austin King
Ripple’s Network Strategy
Ripple’s third leg is building on the existing network effects. With this in mind, the platform decided to follow the example of Facebook in relation to the development of Instagram, using RippleNet and XRP to expand its cooperation with fintech companies and banks. These relationships become a starting point for RLUSD to go further in the process of integration into traditional finance and crypto.
Source: Austin King
As the stablecoin market continues to heat up, platform’s decision to add RLUSD to traditional finance, DeFi, and its current network is brave. With this, the platform is seeking to strengthen the position of XRP as the key median in the transaction flows of RLUSD.
Ripple’s plans for its RLUSD are currently a focus of the market’s attention. If all goes well, RLUSD could change the course of stablecoins and strengthen comany’s standing in the world of traditional finance and decentralized finance. With trading volume still on the rise, people are still waiting for what platform will do next.