Rlusd yes, XRP No: Why does this Ripple partner choose the Stablecoin only?

Rlusd yes, XRP No: Why does this Ripple partner choose the Stablecoin only?

Tl; Dr.

  • One of the first companies to build an XRP strategic reserve has chosen to use RLUSD payments for his subsidiary of electric vehicles instead of Ripple’s Native Non-StableCoin token.
  • The company said that the Stablecoin option will speed up transactions and reduce costs at the same time.

Vivopower International PLC announced The relocation on 8 September, which indicates that his EV daughter-Tembo e-LV-IS started accepting payments in Ripple’s Stablecoin, RLUSD, which was launched less than a year ago.

Tembo describes itself as a company that is looking for practical solutions for real-life challenges that influence conventional international wire transfers, including longer waiting periods and high transaction costs.

The explanation is that RLUSD makes it possible for international wire transfers to be completed “almost immediately” with a “fraction of the costs” of conventional. The Stablecoin also provides security to users because it is 1: 1 linked to the US dollar and is fully supported by Greenback deposits, short-term American treasury and other kasequivalents.

According to the announcement, the expected benefits of trusting RLUSD instead of traditional wire transfers will be as follows:

  • Improve efficiency: Acceleration of transactions, especially for international customers and partners.
  • Pay the costs: Lower costs and delays related to traditional bank channels and Fiat -Maluta.
  • Support Innovation: Promote the approval of digital assets on Enterprise that meet strict compliance and audit standards.
  • Expand Treasury options: Broaden the digital assets and decentralized finance (Defi) strategy of the company.

The relocation, which was also announced on X, led to a few questions from users about why the company only chose the Stablecoin and left Ripple’s much more popular and larger in the market capital – XRP – out of screen.

Although the statement does not tackle this, the most likely reason is probably related to the lack of price fluctuations against traditional options such as the USD. Both assets work as cross -border tokens, but RLUSD maintains its value against the greenback, while XRP can be very volatile.

Nevertheless, Vivopower, who said it is “a strategic transformation undergoes in the world’s first XRP-oriented digital asset company,” has already started to collect it actively. Earlier this month it made a purchase of $ 30 million and is planning to expand that number to $ 200 million in XRP.

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