Crypto researcher SMQKE published a post clarifying key differences between stablecoins like USDC and native blockchain assets like XRP.
Differences Between RLUSD and USDC
In his post, SMQKE addresses the misunderstanding regarding the advantages of Ripple’s RLUSD over Circle’s USDC. Notably, RLUSD offers an integrated solution with the XRPL, while USDC relies on third-party blockchains, creating additional risks for institutions due to the need for partnerships to move value.
Transaction Efficiency on XRP Ledger
SMQKE also examines transaction costs and speed. Transactions on the XRPL occur within three to five seconds and are very inexpensive, whereas operations on Ethereum can be significantly costlier and slower. This aspect makes XRP more appealing to institutional clients.
Anchorage Digital's Support for RLUSD
In his analysis, SMQKE references a report from Anchorage Digital that evaluated various stablecoins based on regulatory compliance and reserve composition. RLUSD was compared to high-compliance assets like PYUSD and USDP, highlighting its alignment with regulatory standards and risk management.
In conclusion, SMQKE emphasizes that the provided arguments and references form a basis for understanding the differences between Ripple's offering and third-party stablecoins, showing why RLUSD may provide advantages in the current financial context.
