A top executive at Ripple — the company that issues XRP — has said a recent proposal by a senior Federal Reserve official could be a game-changer.
Stu Alderoty was reacting to a speech given by Governor Christopher Waller, who has suggested that crypto firms should be given access to Fed “skinny” accounts.
This would allow businesses such as stablecoin issuers to take advantage of the central bank’s payment rails — and eliminate the need to use traditional financial institutions who may be uncomfortable dabbling in digital assets. Waller had said:
“I wanted to send a message that this is a new era for the Federal Reserve in payments, the DeFi industry is not viewed with suspicion or scorn. My view for the Fed from now on is embrace the disruption — don’t avoid it.”
Ripple had originally applied for a Fed master account, which would enable it to hold reserves of its RLUSD stablecoin with the central bank.
Speaking to Reuters last week, Alderoty welcomed Waller’s intervention — saying:
“I think it’s an attractive idea, and I think it should give traditional banks some comfort.”
Cutting banks out as middlemen has the potential to speed up transactions all while making them less expensive, and could help RLUSD go mainstream. All of this comes at a time of more relaxed regulations surrounding stablecoins — not to mention extensive levels of competition from the likes of Tether and Circle.
Alderoty, who serves as Ripple’s chief legal officer, added:
“Thinking about that issue of redeemability, to be able to get in and out of Treasury or U.S. dollar assets quickly, the most efficient and transparent and quickest way to do that would be with access to a master account.”
Of course, Governor Waller’s proposal is primarily theoretical at this stage — but all of that could change if he ends up succeeding Jerome Powell as Fed chairman when his term expires next year.
As previously reported by Cryptonews, all five of those on the shortlist put forward by Treasury Secretary Scott Bessent are pro-crypto in one way or another — and that could pave the way for some much-needed innovation.
All of this comes as Alderoty challenges the narrative, put forward by some U.S. media outlets, that crypto is “no more than a tool of crime and corruption.” Last month, he had posted on X:
“Crypto is a technology used by more than 55 million Americans, and over three-quarters say it’s improved their lives; helping them send money, prove ownership, and build new forms of commerce on transparent, traceable ledgers. Corruption and crime don’t thrive in plain sight.”
To that end, Ripple has provided a $50 million grant to the recently formed National Crypto Association — which aims to debunk some of the misconceptions surrounding digital assets, and educate everyday Americans.
The launch coincided with an in-depth report that suggested 39% of all crypto holders are now using digital assets to purchase goods and services. Given the fact that stablecoins are pegged to the U.S. dollar, RLUSD would be a good fit here.
What remains to be seen is whether access to a Fed “skinny account” — if it ever happens — would actually enable RLUSD to become more competitive, or indirectly benefit XRP’s price.
At the time of writing, RLUSD is the 70th-biggest cryptocurrency with a market capitalization of $1 billion. That pales in comparison with the likes of Circle’s USDC on $75.8 billion — and the market leader Tether streets ahead on $183.5 billion.
Despite a bullish surge over the summer, a fresh all-time high for XRP has also proven elusive, even though unchartered territory was recently achieved by the likes of BTC and ETH.
XPR hit a peak of $3.65 back in July — but that’s still well short of the all-time high of $3.84 set way back in January 2018. What’s more, the No.4 digital asset has now experienced quite a nasty pullback — and is trading at a discount of 35% from this record price.
Market watchers are continuing to await confirmation from the Securities and Exchange Commission that XRP ETFs can start trading on Wall Street, which could attract a groundswell of investment from institutions. Several major asset managers are waiting in the wings to start offering these products.
The post XRP Boss Says Fed Plans Could Be ‘Game Changer’ for Ripple appeared first on Cryptonews.
