At the time this article was written, Ripple OpenUSD has been one of the biggest stories in the world of stablecoins. It’s also a story that’s sparked a lot of discussion. Ripple is a partner of OpenUSD from the very beginning, which has been backed by 140 different companies including Visa, Mastercard BlackRock Coinbase and Google. People have two very different interpretations of the news, depending on whom they ask.
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OpenUSD Stablecoin – What it Really Is
Open Standard created OpenUSD and governs it via a board comprised of its partners. No single company issuing the stablecoin can make decisions. OpenUSD can be minted and redeemed by businesses without any fees and volume limits. The partners will share the profits from the reserve instead of the single company.
Open Standard’s founder chief executive officer, Zach Abrams The project’s rationale:
“We’re thrilled to bring together over 140 businesses to launch Open USD. It’s a stablecoin built for the internet economy, designed by the businesses growing it.”
Ripple has joined a group of companies that have been progressing for a few years now. This decision fits with Ripple’s strategy to keep RLUSD going while also having a voice in multichain, larger projects. Ripple’s President Monica Long mentioned this in her description of the future payments. “multichain, interoperable, and built on institutional-grade blockchain infrastructure.” The XRP Ledger was also called by her. “natural home” This kind of comment tends to make the XRP Ledger adopters talk about XRP Ledger almost instantly.
OpenUSD Hasn’t Launched On XRPL Yet
It’s important to note this part, which is easy to forget. OpenUSD is launched on Solana and Stellar. It’s not available on the XRP Ledger. While Ripple OpenUSD headlines may suggest a win for XRPL at launch, OpenUSD itself does not run on the XRP Ledger. This was also noted by other analysts, who said that Ripple’s participation looks like a more strategic approach than a direct boost for Ripple XRP. RLUSD will continue to run on XRP Ledger, Ethereum and Ripple in the meantime.
Samara Cohen is BlackRock’s Global Head of Market Development. She spoke on why an organization like BlackRock would want to be involved in this project.
“Open USD is a constructive step toward giving businesses more choice in how they access tokenized value and participate in internet-native digital rails.”
Shan Aggarwal is also on the record, and says that stablecoins have become one of the biggest developments in payment right now. This view seems to be shared by most companies.
What’s next for XRP and RLUSD?
Ripple appears to have built its strategy for stablecoins around flexibility rather than exclusivity. The company is backing OpenUSD as well as RLUSD. They are also presenting the XRP Ledger option, without any force. Open Standard is the only thing that will decide if Ripple OpenUSD has any impact on XRP Ledger’s stablecoin. Open Standard still hasn’t made a confirmation, and for now, the XRP Ledger adopter angle is more of a potential than a certainty. At the moment, Ripple OpenUSD is still developing and worth following.
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Source: watcher.guru
