XRP News Today: Ripple’s RLUSD Stablecoin Faces Authenticity Concerns Amid Industry Partnerships

Blockchain investigator ZachXBT has raised concerns about the authenticity of Ripple’s new RLUSD stablecoin. In a recently deleted post, ZachXBT alleged that the project lacks a genuine user base and is heavily reliant on paid partnerships to create the appearance of real adoption. This criticism suggests that Ripple may be artificially inflating RLUSD’s popularity through strategic deals with other companies, rather than fostering organic user growth. ZachXBT compared RLUSD to other stablecoins such as Circle’s USDC, Paxos’s USDP, and Tether’s USDT, expressing greater trust in these issuers.

In response to ZachXBT’s claims, an XRP supporter argued that RLUSD is actively used within Ripple’s payment network. The supporter acknowledged that Ripple, like many blockchain projects, engages in paid partnerships to boost adoption, but emphasized that this practice is common in the industry. The supporter contended that these partnerships do not necessarily indicate fake adoption, especially when the product has real-world applications.

ZachXBT also criticized Circle for its USDC stablecoin, accusing the company of failing to detect and freeze suspicious transactions linked to North Korean IT operatives. Despite Circle’s claims of robust compliance and monitoring systems, ZachXBT asserted that the stablecoin is being misused for illicit activities.

As governments worldwide tighten their control over stablecoins, issuers face increasing reputational risks. This regulatory scrutiny adds another layer of complexity to the already contentious debate surrounding the authenticity of RLUSD.

Despite the criticism, RLUSD has made significant strides in the crypto world. The stablecoin has been adopted by prominent exchanges such as Bitstamp and Bullish, with Ripple’s President Monica Long envisioning broader expansion. If this expansion materializes, it could mark a significant milestone in RLUSD’s journey toward global adoption. RLUSD offers on and off-ramps, allowing users to seamlessly move funds between traditional and digital currencies. Monica Long also highlighted that RLUSD would be supported by XRP, which does not rely on other parties, making the assets more stable and easier to use.

Ripple aims to integrate RLUSD into various financial services beyond trading. The goal is to create a valuable stablecoin for lending, borrowing, payments, and other decentralized finance (DeFi) services. The company is exploring how the stablecoin can function on both centralized and decentralized platforms. RLUSD is already being used as collateral in Ripple’s recent acquisition of Hidden Road, a global broker, for $1.25 billion. This acquisition underscores RLUSD’s growing involvement in large-scale financial transactions.