John Deaton clarifies Ripple’s RLUSD stablecoin competes with Circle’s USDC, not XRP, as XRP targets cross-border payments.
John Deaton has clarified that XRP is not in competition with Circle or USDC. His comments clarify the pervasive misunderstanding regarding Ripple’s role, its RLUSD stablecoin, and the token’s function in the market.
Clearing Up the Confusion Behind Ripple’s Stablecoin Strategy: XRP vs. Circle
Pro-XRP advocate John Deaton has refuted recent rumors that XRP directly competes with Circle by employing an X post. The confusion commenced when Dave Portnoy, a representative of Barstool, sold his XRP based on a prediction that Circle would compete with the token.
As previously reported, Dave Portnoy expressed his regret regarding the decision in a video, stating, “I want to cry” after selling his stash at $2.40. In response to the recent achievement of a new all-time high (ATH) for XRP, Portnoy issued the following statement.
The crypto asset has significantly outperformed Bitcoin, with a nearly 23% increase in the past seven days. Deaton clarified that Circle and XRP are not competitors. The company responsible for RLUSD, Ripple, is in the same industry as Circle.
However, Ripple is not employing XRP to penetrate the stablecoin market. It is doing so by utilizing RLUSD, a new stablecoin introduced to challenge USDC directly. Deaton emphasized that XRP is a token. The XRP Ledger is powered by it. Ripple is a financial technology corporation. Circle is an additional fintech organization.
Although they both construct financial infrastructure, their instruments are distinct. The token is not intended to function as a stablecoin. It does not intend to supplant USDC or enter that category.
This clarification is crucial because the repercussions of conflating Ripple with XRP are substantial. Deaton stated that such errors are prevalent and result in suboptimal trading decisions. Ripple’s Managing Director, Reece Merrick, has also recently addressed this misconception regarding XRP, which is that it is synonymous with the crypto firm.
Deaton Dispels Competition Myths: Ripple’s RLUSD Intended for Stablecoin Market
Additionally, the legal counsel clarified that Ripple’s objective in introducing RLUSD is to compete with established stablecoins, including USDC. The token does not influence the stablecoin’s function and design. It continues functioning as a transit currency and liquidity asset within the XRP ecosystem.
Deaton also mentioned that there was a speculation that Ripple and Circle were considering a business partnership. This suggests a prospective past collaboration rather than an ongoing rivalry. Consequently, he encouraged the public to cease equating token performance with company competition.
