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XRPL Set to Unlock Massive Liquidity with RLUSD and Interledger Pools

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  • Liquidity on the XRP Ledger (XRPL) will be enhanced through interoperable Automated Market Maker (AMM) pools.
  • XRP’s price must rise to facilitate the trillions in settlement needed for daily global transactions.
  • The true circulating supply of XRP is much lower than commonly reported, significantly impacting its market dynamics.

The XRP Ledger is poised for a big boost in liquidity, while a spate of upcoming Automated Market Maker pools is soon expected. When RLUSD goes live, financial institutions as small as banks or as large as governments will be able to use their own tokens, fiat, or CBDCs and pool with RLUSD.

According to researcher Crypto Tank, those kinds of pools will be interoperable with each other through the Interledger Protocol for smoothly conducting transactions among different financial networks. Such architecture solves some of the main challenging points in the financial world: lack of liquidity, market depth for settlements, and counterparty risk.

Pairing any other currency with RLUSD provides for a more stable structure that would not easily suffer from massive price fluctuations during transactions. Using ILP, these liquidity pools will be interconnected on XRPL to give the depth needed to facilitate such high-volume transactions amounting to trillions each day. Adding the XRP as a bridge asset further fortifies this system in the facilitation of the transactions.

Scalability via ILP for Trillions in Transactions

The Interledger Protocol is Ripple’s creation with the aim of solving the scalability capabilities of the XRPL, which was designed to process global-scale transactions. Presently, XRPL processes 1,500 TPS. ILP aimed at connecting different networks and increasing TPS to prepare XRPL for trillions in daily transaction volume when banks and governments start settling on the ledger.

When the system is at full-scale use, Ripple will leverage ILP to improve transaction throughput and guarantee smooth settlements between different currencies and assets. RLUSD goes right to the heart of this strategy, considering the eventual goal of Ripple to process global liquidity at scale.

Circulating Supply of XRP Much Lower Than Expected

The actual amount in use for the settlement of transactions is way lower than the number reported in circulation, which is 56 billion XRP. The supply on the ledger does not take into account the huge amounts held by financial institutions or locked in escrow. With over 1,700 agreed Non-Disclosure Agreements, Ripple says that the true circulating supply could be between 10 and 20 billion XRP.

The approach to get such supply would mean the price of XRP shall have to be much higher to provide the needed liquidity for such huge-volume transactions. In the future, as more assets, including tokenized real estate and debt, can come into the XRPL ecosystem, the value of XRP will need to be appreciated with the growing use cases in order to ensure frictionless operations and prevent transaction failures.

Related Reading | Solana’s SOL Tapped for USDe Expansion in Ethena’s Bold New Proposal

Trump’s Crypto Push: Innovation Or Conflict Of Interest?

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Cryptorphic has made some observations regarding the increasing focus of Donald Trump on cryptocurrencies. The recent announcement by Trump about making the U.S. the “crypto capital” has created a buzz, but there are concerns over the ethical dilemmas due to conflict of interest.

Trump has changed his mind and is now supporting cryptocurrencies and has presented a pro-crypto plan in case he gets back to power. Some of the things that he has vowed to do are to establish the national Bitcoin reserve as well as come out strongly against CBDCs.

This platform is to ensure that the U.S. embraces cryptocurrencies and digital assets while promoting innovation and freedom in the financial sector. Some of the people in the crypto community believe that such policies could help advance the industry and make the U.S. lead in the use of blockchain technology.

Trump’s Crypto Involvement

However, controversy has emerged regarding Trump’s dual role in politics and crypto. His family’s new venture in the world of cryptocurrency called ‘World Liberty Financial’ has raised the issue of conflict of interest in case he becomes the president.

Some of the critics have expressed their concern that Donald may use his political authority to advance the business interest. There are clear ethical issues that need to be discussed regarding the fact that his personal financial concerns and the policies of the nation are not well delineated.

The current support of Trump for cryptocurrencies has already influenced the market. This is evident from the fact that after his pro-crypto statements, Bitcoin experienced a price surge showing how much influence Donald had in the crypto market.

Market analysts argue that this influence may have future effects on cryptocurrency regulation and prices. Should Trump remain in the picture, he could be a market maker with his words.

Some observers believe that Trump’s shift toward cryptocurrencies is more of a political stunt than a change of heart. In this way, he may try to attract young voters, especially those who are interested in the idea of cryptocurrencies.

A Political Move or Genuine Policy?

However, critics argue that Trump’s position may not be as genuine as it seems, and it may be a tactic to win the support of the cryptocurrency industry during the elections. Some of them question whether this means that the president will change the policy in favor of cryptocurrencies.

Critics are questioning the propriety of Trump’s participation in the crypto space as well as in politics. This creates a possibility of conflict of interest between his business and political activities.

While Trump supports cryptocurrency, the regulators are asking for more regulatory measures. His business and political pursuits may create a conflict of interest, and analysts have urged the public and the company to disclose more information about his role.