- Ripple’s SVP hinted at offering RLUSD stablecoin yields to generate passive income from corporate treasuries’ idle capital.
Renaat Ver Eecke, Senior Vice President of Ripple, revealed their incoming offerings from Ripple Treasury (formerly GTreasury). According to him, their company is continuously working to connect its regulated payments network and prime brokerage to institutions.
Ver Eecke expects their efforts to result in corporates adopting digital assets and stablecoins to harness their advantages in bringing efficiency and speed in cross-border payments. Interestingly, he disclosed that Ripple will offer a 24/7 yield on idle cash using the same crypto assets.
RLUSD Yields Could Face Heat From Clarity Act
The SVP didn’t elaborate on the part of the upcoming stablecoin yield from the Ripple USD (RLUSD). However, the revelation comes hot on the heels of the debate surrounding the same issue on the pending Clarity Act in the US.
The banking sector notably warned that allowing yields on stablecoin holdings alone would trigger a flight of up to $6 trillion from bank deposits into the crypto sector. Digital asset businesses argued that the same mechanics have been in place over the past couple of years, but it’s only now that traditional finance (TradFi) is raising the matter.
If passed in its current form, the stablecoin restrictions on the Clarity Act could impede Ripple’s planned rewards for RLUSD holders in the US. Meanwhile, it could fuel its massive adoption outside the scope of American regulators.
On the other hand, if the opposition to the bill’s existing language, particularly Coinbase, succeeds in lobbying for better terms that secure clear and favorable terms for stablecoin yields, it could easily propel RLUSD’s adoption in the home of the world’s largest capital markets, the US.
Ripple Treasury is the ‘Secret Sauce’ for Institutions
Despite the possible hiccups RLUSD could face in the US if it indeed proceeds with offering interest payments on users’ idle holdings, Brad Garlinghouse, CEO of Ripple, touted that Ripple Treasury holds the “secret sauce” for institutions looking to stand out in the digital finance revolution.
The CEO highlighted that Ripple Treasury’s ingredients are simple:
- Offer corporates trusted and regulated solutions that they can seamlessly plug into their workflows
- Eliminate friction in managing fiat or digital accounts
Garlinghouse emphasized that Ripple Treasury’s model enabled it to capture $13 trillion in payment flows last year. He projects that the next upgrades will exponentially increase the numbers.
RLUSD is among the top 10 stablecoins in the world with a market cap of $1.26 billion and $10.5 billion in monthly transfer volume.
