Predictably, people want to know, "What about #XRP?" given the Hidden Road news. The mention of $RLUSD collateral has unnerved some. This time, I think, is different. Here's why:
▶️Both Brad and David talked about plugging the XRPL into this financial infrastructure of deep capital markets with the announcement.
▶️ Ripple’s retail remittance dream didn't fully scale, and even enterprise payments have been a long-term build. But note how the definition of payments is shifting, now away from individual crypto transactions and toward institutional treasury and liquidity flows. This is where the big money lives.
▶️ The classic, easy-to-grasp 1:1 XRP use isn't front-and-center anymore, but that doesn't mean it's gone. In fact, XRP is now potentially embedded in markets far larger than retail payments. @X__Anderson reminded
that institutional clearing and liquidity dwarfs remittances, and the XRPL is designed for it, with XRP at the center.
▶️Of course $RLUSD is better collateral. It's stable and regulated to fit institutional risk tolerances. But moving, trading, minting, and importantly, bridging liquidity will require and involve XRP. Crossing walls, dodging currency blocs; XRP. It's always been about connecting walled gardens, even the ones represented on the XRPL. (The potential for AMM liquidity pools grows, too.)
▶️With real liquidity on ledger, direct use of #XRP also becomes easier and more defensible corporately. Tokenization becomes easier and more liquid. There is a real "flywheel" spinning up if this works for the ledger and XRP, but note that it's likely RLUSD is the first among many potential assets. They aren't all always replacing XRP. They can't.
▶️This is what many have wanted to see for a long time. This is crypto at the adult table. No one else is doing this yet, after 15 years, with such vertical integrations. JPM? Fnality?
▶️Make no mistake, it needs to work, even as a test case. This is the first time crypto could prove itself necessary, not just speculative, and Ripple is at the forefront talking about using the XRPL.
OK, done yammering for the night, but this feels like the beginning realization of things I heard the XRP community talk about years ago.
Original post: https://x.com/WKahneman/status/1909756355495575706