How Might Recent XRP Ledger Updates Influence Ripple’s Stablecoin?

The XRP Ledger (XRPL) has recently rolled out two significant upgrades, generating interest around their influence on Ripple's upcoming stablecoin, RLUSD, and the overall ecosystem.

These enhancements, “fixEmptyDID” and “fixPreviousTxnID,” received approval from 31 validators, surpassing the threshold for activation.

The “fixEmptyDID” upgrade enhances efficiency by preventing the creation of empty ledger entries, thereby minimizing unnecessary data. Meanwhile, “fixPreviousTxnID” improves transaction tracking with new fields that facilitate easier monitoring of transaction histories.

With these upgrades, many are curious about their effect on RLUSD. Ripple’s President, Monica Long, emphasized that while both upgrades are crucial, they cater to different functionalities—RLUSD is designed for institutional use, while XRP focuses on liquidity.

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These enhancements aim to elevate XRPL’s performance, allowing for more sophisticated applications and streamlining operations. As Ripple tests RLUSD on XRPL and Ethereum, expectations grow regarding its improved functionality, with a launch anticipated later this year, subject to U.S. regulatory approval.

In a recent interview, Long hailed Ripple’s legal win as transformative for the crypto sector, asserting it clarifies U.S. regulations and establishes a new standard. With 40% of Ripple’s growth already stemming from Asia before the SEC lawsuit, the firm is accelerating its global outreach and aims to enhance product accessibility in the U.S. Overall, these updates are poised to significantly enhance the flexibility and usability of both RLUSD and XRP, fostering optimism within the XRPL community.

Alexander Zdravkov