In a CNBC interview, Ripple CEO Brad Garlinghouse discussed key aspects of the company’s strategy and its approach to international payments.
Ripple's Strategy for International Payments
Garlinghouse stated that Ripple's primary goal is to solve the cross-border payment issue. "We use stablecoins, and we deploy XRP when necessary," he said, adding that the choice of payment method is based on practicality and efficiency.
The Roles of XRP and Stablecoins in Global Transactions
Garlinghouse noted that XRP and stablecoins serve different functions in global money transfers, and this distinction is especially important for institutional customers. Ripple's newly launched US dollar-pegged stablecoin RLUSD reached a market value of $500 million in just a few months. Expressing satisfaction with this rapid growth, Garlinghouse stated that the company’s late entry into the stablecoin market was due to existing solutions already in place.
Partnership with Bank of New York Mellon
Ripple also announced that it will partner with the world's largest custodian bank, Bank of New York Mellon, to store RLUSD reserves. Argueing that this choice will increase trust, Garlinghouse said, "Working with a reliable, regulated and well-capitalized partner reinforces trust in the entire system."
Garlinghouse concluded that a more accurate approach for cryptocurrencies to create value lies in integrating with traditional finance rather than completely eliminating it, stating that the world will not be dominated solely by cryptocurrencies.
