Ripple’s XRP Shifts Focus: Is It Paving the Way for Stablecoins on DEXs?

As we know, blockchain startup Ripple has been facing challenges while dealing with global regulators, especially the US SEC. Ripple’s native cryptocurrency XRP has been at the center of all the controversies because of which it has witnessed subdued adoption.

However, the latest reports suggest that Ripple is changing the positioning for its XRP cryptocurrency. In the past, Ripple held ambitious plans for XRP. Statements dating back six years, which have been brought to light by the XRP community, shed light on Ripple’s goal to establish XRP as a global reserve currency. Both an uncovered blog post from the fintech company and a speech by CEO Brad Garlinghouse detailed Ripple’s vision for XRP.

However, it seems that Ripple has decided to look beyond XRP as the global reserve currency, and rather focus on areas offering better utility. Now, they are looking at pushing Ripple’s ODL services into decentralized exchanges.

Ripple’s Shift of Focus

A prominent XRP influencer, Crypto Eri, shared her perspective on the matter, noting that Ripple had already moved away from the idea of XRP becoming a reserve currency. She pointed out that this topic hasn’t been discussed in recent years. She also referred to recent comments made by CTO David Schwartz, who mentioned that the company is in discussions with banks and large financial institutions to introduce stablecoins to their upcoming proprietary decentralized exchange (DEX) integrated with On-Demand Liquidity (ODL).

As a result, the focus appears to be shifting towards the integration of stablecoins on the XRP Ledger (XRPL) and the potential use of decentralized exchanges (DEXs) in Ripple’s ODL service. Schwartz also shed light on the company’s current direction, explaining that decentralized exchanges are not presently part of ODL but highlighting ongoing efforts to incorporate DEX services that would facilitate trading against automated market makers (AMMs).

Schwartz provided further details regarding Prisma, an API associated with On-Demand Liquidity (ODL). He described how Prisma has the capability to tap into the liquidity of ious exchanges, including decentralized exchanges (DEXs). It can also break down significant transactions into smaller, more manageable segments to optimize liquidity utilization.

However, a significant obstacle still exists. Schwartz emphasized the need for stablecoins tied to major currencies like the US dollar or Euro for the practical implementation of these plans. He revealed that Ripple had come close to integrating stablecoin functionality onto the XRP Ledger (XRPL) but lamented that the SEC lawsuit against Ripple, which occurred two and a half years ago, had disrupted that potential deal.

Despite facing these challenges, Ripple’s dedication to innovation remains unwavering. Schwartz affirmed that the company is actively in discussions with leading financial institutions regarding the introduction of stablecoins.

XRP Price Action

Ripple’s native cryptocurrency XRP lost all of its gains made after the July court ruling and is currently trading at the $0.50 level. The $0.5 threshold holds more than just numerical significance; it represents a psychological resistance point that traders frequently approach with caution.

Should XRP succeed in holding its ground above this mark, it may lay the foundation for confronting the next substantial obstacle: the 200 Exponential Moving Average (EMA). Historically, breaching the 200 EMA has proven challenging, but given the current surge in momentum, it could potentially yield this newfound strength.