A Spot XRP ETF ‘Would Make a Lot of Sense’, Says Ripple President Monica Long at Money20/20 Europe Conference

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As a researcher with a background in finance and technology, I find Monica Long’s interview at the Money20/20 Europe Conference particularly intriguing. Ripple’s strategic initiatives and Monica’s insights into the evolving crypto landscape provide valuable information for anyone interested in this dynamic space.

At the Money20/20 Europe Conference in Amsterdam from June 4-6, 2024, Ripple President Monica Long granted an extensive interview to Arjun Kharpal, CNBC’s Senior Technology Correspondent. In this conversation, she shared insights into Ripple’s strategic plans and the current trends shaping the cryptocurrency industry. Topics included the growing institutional adoption of cryptocurrencies, the introduction of a US dollar stablecoin by Ripple, and the prospective approval of XRP spot ETFs in the United States.

Expert: Long pointed out the substantial increase in institutional involvement within the cryptocurrency sector. She underscoreed the role of key players such as BlackRock in driving this trend, with their Bitcoin and Ethereum ETFs receiving approval in the US marking a pivotal milestone. This event has brought in a larger pool of traditional investors to crypto through ETFs and the tokenization of real-world assets.

Based on Long’s perspective, tokenization is gaining significance in the conventional financial sector. Notably, significant players like Société Générale are spearheading this movement by digitizing securities such as bonds and shares through tokenization.

Monica Long revealed that Ripple intends to join the stablecoin sector, unveiling a dollar-pegged version. She elaborated that the stablecoin market holds significant potential, estimated at approximately $160 billion presently, with forecasts indicating potential expansion to a staggering $3 trillion in the ensuing four to five years. The surge in demand for stablecoins is attributed to their convenience in facilitating seamless access to US dollars across borders and streamlining global transactions.

Ripple intends to cater to the requirements of its financial institution clients seeking advanced global payment solutions through its upcoming stablecoin. Leveraging its established trust, adherence to regulations, and robust security in the business sector, Ripple is confident in introducing a dependable US dollar-pegged digital currency. The development of essential frameworks such as banking partnerships, regulatory approvals, and distribution networks is underway, with an anticipated release towards the end of this year.

Monica Long explained how stablecoins and XRP complement each other in Ripple’s system. The primary function of XRP remains as a facilitator for cross-border transactions, notably for less commonly traded currency pairs. The arrival of stablecoins doesn’t diminish XRP’s role; instead, they will work together to enhance payment solutions for Ripple’s clients.

At the end of the interview, there was a debate about the possibility of listing XRP spot Exchange-Traded Funds (ETFs) in the United States. According to Long’s perspective, it would be logical for XRP to have such an ETF due to its regulatory transparency in the US and its position among the top ten cryptocurrencies based on market capitalization and daily trading volume.

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2024-06-06 18:43