Ripple Confirmed Using Tether and USDC as Bridging Assets in ODL, With XRPL DEX as Long-Term Target
Ripple has been using third-party stablecoins, specifically Tether and USDC, to bridge transactions within its On-Demand Liquidity product. The stated long-term goal remains the XRPL decentralized exchange, with a focus on attracting higher-quality assets to the ledger. This positions RLUSD and the XRPL DEX as strategic priorities for Ripple's payments infrastructure.
Ripple has confirmed use of Tether and USDC stablecoins as bridging instruments within its On-Demand Liquidity corridors. This represents a pragmatic interim approach, prioritizing speed and cost efficiency in cross-border payment flows while the XRPL ecosystem matures.
The longer-term strategic direction, according to commentary from within the XRP community and corroborated by Ripple's own public statements, is to migrate that bridging function to the XRPL decentralized exchange. The reasoning is straightforward: the XRPL DEX offers faster settlement and lower costs than relying on external stablecoin infrastructure.
A recurring theme in discussions of this topic is the importance of expanding the quality and diversity of assets available on the XRPL. More high-quality assets on the ledger would strengthen the DEX's utility as a bridging mechanism and reduce dependence on off-ledger stablecoins.
This development is relevant to holders and developers monitoring RLUSD adoption, as Ripple's own native stablecoin is a natural candidate to eventually replace third-party stablecoins in ODL flows. The transition timeline remains unclear, but the directional intent appears consistent across multiple communications.
Key facts
- •Ripple has used Tether and USDC to bridge On-Demand Liquidity transactions
- •The XRPL DEX is the stated long-term target for bridging activity
- •Priority is placed on cheaper and faster settlement options
- •Expanding quality assets on XRPL is a recurring strategic goal
- •RLUSD is a natural candidate to replace third-party stablecoins in ODL flows