A recent tweet from Shawn Oroogle, a member of the World Economic Forum, has ignited significant interest in the cryptocurrency and financial technology sectors.
Oroogle revealed that HBAR, Hedera’s native cryptocurrency, is expanding its integration within the U.S. Federal Reserve’s ecosystem, partnering with XRP to enable Ripple USD (RLUSD) payments.
This development, if realized, marks a significant milestone for both Hedera and Ripple in the global payment and stablecoin landscape.
🚨BREAKING: $HBAR integration into the Federal Reserve to expand in partnership with $XRP to enable RLUSD payments
After Hedera was successfully integrated into the FedNow payment system of the U.S. Federal Reserve through dropp, there might soon be an expansion of the… pic.twitter.com/z4y0NmLJvK
— Shawn (@oroogle) November 24, 2024
Background on Hedera and Federal Reserve Integration
Hedera was previously integrated into the Federal Reserve’s FedNow payment system via Dropp, a micropayment platform built on the Hedera network.
FedNow, launched in 2023, is the Federal Reserve’s real-time payment system designed to enable instant money transfers across the United States. Hedera’s role in facilitating microtransactions has highlighted its potential to support scalable and efficient payment solutions.
Building on this initial integration, Oroogle’s tweet suggests that Hedera’s partnership with Ripple and the introduction of RLUSD, a stablecoin designed to mirror the U.S. dollar, will enable swift and cost-effective transactions through a robust interoperability layer between HBAR and XRP.
Ripple USD and its Role in Payments
Ripple USD (RLUSD) is an underway stablecoin built for seamless, fast, and low-cost transactions. Unlike traditional fiat currency systems, stablecoins such as RLUSD operate on the blockchain network, providing transparency and efficiency.
RLUSD is part of Ripple’s broader initiative to establish itself as a key player in stablecoin and central bank digital currency (CBDC) settlements.
Oroogle also hinted at an emerging interoperability standard between Hedera and Ripple, potentially encompassing HBAR and XRP. This would facilitate the integration of different blockchain ecosystems, advancing the adoption of decentralized payment solutions.
Community Reactions and Clarifications
The tweet garnered significant attention from cryptocurrency enthusiasts and analysts. An X user, nietzbux, questioned the specifics of the integration, asking whether RLUSD would run on Hedera or the XRP Ledger (XRPL) and the source of the information.
Oroogle responded, citing “internal sources”. He explained that the stablecoin would likely be bridged and integrated through Hedera’s Stablecoin Studio. However, he emphasized the need to wait for an official announcement for further details.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Implications for the Financial and Cryptocurrency Sectors
If confirmed, this collaboration could have far-reaching implications. By integrating HBAR and XRP with RLUSD payments, the initiative could serve as a model for interoperability between different blockchain networks. This aligns with ongoing efforts by both Hedera and Ripple to set global standards for CBDC and stablecoin transactions.
Additionally, the potential use of Hedera’s Stablecoin Studio as the integration mechanism underscores its capability to support enterprise-grade stablecoin solutions. Ripple’s experience in cross-border payments and Hedera’s focus on scalable, energy-efficient blockchain technology could form a synergistic partnership, positioning both entities as key players in the evolution of digital payments.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
