Regulation
Ripple’s Monica Long: “There’s Much More Upside Potential for Decentralized Exchange XRP Ledger”
In a recent interview with The Block’s director of special projects, Frank Chaparro, for episode 38 of The Scoop podcast, Ripple president Monica Long shared her thoughts on the current state and future of Ripple, crypto regulations and blockchain technology. The conversation covered a wide range of topics, including Ripple’s ongoing legal battles, the expansion of their business, and the broader landscape of cryptocurrency regulation and adoption.
Business growth and legal clarity
Long began by highlighting significant developments since the last public discussion. He noted that Ripple received a favorable court decision in July 2023 regarding their case with the SEC, which clarified that XRP is not considered a security. He stated that this decision provided Ripple with the clarity needed to move forward with its business operations in the United States. Despite regulatory challenges, he said, Ripple’s business continues to grow, expanding beyond cross-border payments to include a broader range of blockchain infrastructure services.
Expanding beyond payments
Long also said that Ripple’s focus has shifted from exclusively serving cross-border payments to becoming a holistic provider of enterprise blockchain infrastructure. They have built essential infrastructure to support connectivity between blockchain and traditional financial binaries, allowing them to serve over 80 markets globally. The acquisition of Medico, now Ripple Custody, has improved their ability to provide custody services, which is critical to their payment clients and large banks.
Regulatory context and global expansion
Long addressed the current regulatory environment in the United States, describing the SEC’s approach as a “war on cryptocurrencies” driven by enforcement rather than clear rules. Despite this, he noted that Ripple has seen greater growth in regions where governments have established clear regulations, such as Europe, Singapore and Brazil. These regions, he said, have provided regulatory clarity, allowing Ripple to expand its operations and serve a growing number of customers.
The role of stablecoins
A significant part of the conversation focused on Ripple’s decision to launch a USD stablecoin. Long explained that stablecoins and XRP are complementary and serve different use cases within their ecosystem. While XRP serves as a bridging asset for cross-currency or cross-token payments, stablecoins are used for transactions where stability and cost-efficiency are crucial, such as USD to EUR flows. Ripple’s stablecoin will initially target existing customers and payment banks, leveraging their established relationships and infrastructure.
Tokenization and real-world assets
There has been a lot of discussion about the growing interest in tokenizing real-world assets, such as stocks and money market funds. Ripple’s custodial product apparently supports these tokenization efforts, allowing customers to tokenize a variety of assets securely and efficiently. Long added that growing interest from large institutions in asset tokenization means broader acceptance of blockchain technology in traditional finance.
Future Opportunities and Innovations
Looking ahead, Long expressed excitement about the potential for further innovation and expansion within Ripple. He mentioned the possibility of launching a spot XRP ETF, pointing to the court ruling that made it clear that XRP and Bitcoin are the only two crypto assets in the United States with such status. Long also highlighted the value of the infrastructure that Ripple has built over the years, positioning it to serve a wide range of business use cases beyond payments.