At this year’s Money20/20 Europe Conference (held 4-6 June, 2024, in Amsterdam), Ripple President Monica Long gave an interview — to Arjun Kharpal, CNBC’s Senior Technology Correspondent — during which she provided a comprehensive overview of Ripple’s strategic initiatives and the evolving landscape of the cryptocurrency market. The discussion covered the increasing institutional interest in crypto, the launch of a US dollar stablecoin, and the potential for spot XRP ETFs in the U.S.

Long highlighted the significant influx of institutional interest in the cryptocurrency space. She noted that major financial entities like BlackRock have been instrumental in this shift, particularly with their spot Bitcoin and Ethereum ETFs gaining approval in the U.S. This development has marked a seminal moment for the market, attracting more traditional investors to crypto via ETFs and the tokenization of real-world assets.

According to Long, tokenization is emerging as a critical trend among traditional financial institutions. She mentioned that major banks, including Société Générale, are leading efforts to tokenize various securities such as bonds and equities.

Monica Long announced Ripple’s plans to enter the stablecoin market with a dollar-backed stablecoin. She explained that the market for stablecoins is substantial, currently valued at around $160 billion, with projections suggesting it could grow to $3 trillion in the next four to five years. Long says the demand for stablecoins is driven by the need for easy access to US dollars globally and the efficiency they bring to global payments.

Ripple’s stablecoin aims to meet the needs of its financial institution customers who are looking for more efficient global payment solutions. Given Ripple’s longstanding reputation for trust, compliance, and security in the enterprise space, the company believes it is well-positioned to introduce a reliable US dollar stablecoin. Long confirmed that Ripple is working on the necessary infrastructure, including banking and distribution relationships and regulatory compliance, with a likely launch later this year.

Monica Long clarified the complementary roles of the stablecoin and XRP within Ripple’s ecosystem. XRP continues to serve as a bridge asset for cross-border transactions, particularly for the long tail of currency pairs. The introduction of the stablecoin will not diminish the role of XRP; instead, both assets will be used in tandem to optimize payment solutions for Ripple’s customers.

The interview concluded with a discussion on the potential for spot XRP ETFs in the U.S. Long suggested that it would make sense for XRP to have a spot ETF, given its regulatory clarity in the US and its status as a top ten cryptocurrency by market cap and daily traded volume.