Ripple President Monica Long recently sat down with The Block’s Director of Special Projects, Frank Chaparro, to discuss the current state and future of Ripple, crypto regulations, and blockchain technology. The conversation covered a wide range of topics, including Ripple’s legal battles, business expansion, and the regulatory landscape of crypto. Long highlighted Ripple’s favorable court decision with the SEC in July 2023, clarifying that XRP is not considered a security. This decision has given Ripple the clarity needed to move forward with their business in the U.S. Despite regulatory challenges, Ripple’s business continues to grow, expanding beyond cross-border payments to offer a broader range of blockchain infrastructure services.
Ripple’s focus has shifted from cross-border payments to becoming a holistic enterprise blockchain infrastructure provider. They have built essential infrastructure to support connectivity between blockchains and traditional financial rails, serving over 80 markets globally. The acquisition of Medico, now known as Ripple Custody, has enhanced their ability to provide custody services, essential for payment customers and large banks. Long also addressed the regulatory environment in the U.S., describing the SEC’s approach as a “war on crypto” driven by enforcement rather than clear rules. However, they have seen more growth in regions with clear regulations, such as Europe, Singapore, and Brazil, enabling them to expand operations and serve more customers.
Ripple’s decision to launch a USD stablecoin was also discussed during the conversation. Long explained that stablecoins and XRP are complementary, serving different use cases within their ecosystem. While XRP acts as a bridge asset for cross-currency settlements, stablecoins are used for transactions requiring stability and cost-efficiency, such as USD to EUR flows. Ripple’s stablecoin will target existing payment customers and banks initially, leveraging their established relationships and infrastructure. Long also touched on the increasing interest in tokenizing real-world assets like securities and money market funds, noting that Ripple’s custody product supports these efforts, enabling secure and efficient tokenization.
Looking towards the future, Long expressed excitement about the potential for further innovations and expansions within Ripple. She mentioned the possibility of launching a spot XRP ETF, highlighting the court’s ruling that clarified XRP and Bitcoin as the only two crypto assets with such a status in the U.S. Long emphasized the value of the infrastructure Ripple has built over the years, positioning them to serve a wide range of enterprise use cases beyond payments. Despite regulatory challenges, Ripple remains optimistic about their future growth and the opportunities for innovation within the blockchain and crypto space.
