RLUSD Yes, XRP No: Why Is This Ripple Partner Choosing Only the Stablecoin?

TL;DR One of the first companies aiming to build an XRP strategic reserve has opted to use RLUSD payments for its electric vehicle subsidiary instead of Ripple’s native non-stablecoin ￰0￱ firm said the stablecoin option will speed up transactions and reduce costs at the same ￰1￱ International PLC announced the move on September 8, indicating that its EV subsidiary – Tembo e-LV – has started to accept payments in Ripple’s stablecoin, RLUSD, which launched less than a year ￰2￱ describes itself as a company seeking practical solutions to real-life challenges that affect conventional international wire transfers, which include longer waiting periods and high transaction ￰3￱ statement reads that RLUSD will allow for international wire transfers to be completed “almost instantaneously” at a “fraction of the cost” of conventional ￰4￱ stablecoin also provides security to users as it’s pegged 1:1 to the US dollar and is fully backed by greenback deposits, short-term US treasuries, and other cash ￰5￱ to the announcement, the expected benefits of relying on RLUSD instead of traditional wire transfers will be as follows: Improve Efficiency : Speed up transactions, especially for international customers and ￰6￱ Costs : Lower fees and delays associated with traditional banking channels and fiat ￰7￱ Innovation : Promote the adoption of enterprise-ready digital assets that meet strict compliance and audit ￰8￱ Treasury Options : Broaden the Company’s digital asset and decentralized finance (DeFi) ￰9￱ move, which was also announced on X, led to some questions from users about why the company has opted only for the stablecoin and has left Ripple’s much more popular and bigger in market cap asset – XRP – out of the ￰10￱ the statement doesn’t address this, the most probable reason is likely related to the lack of price fluctuations against traditional options like the ￰11￱ assets operate as cross-border tokens, but RLUSD maintains its value against the greenback, while XRP can be highly volatile.

Nevertheless, VivoPower, which said it “is undergoing a strategic transformation into the world’s first XRP-focused digital asset enterprise,” has already started to accumulate the ￰12￱ made a $30 million purchase earlier this month, and plans to expand that number to $200 million worth of XRP.