In a recent live space on X, David Schwartz, the Chief Technology Officer of Ripple, engaged in discussions about the Ripple ecosystem. One thing of note during this conversation was Ripple’s desire to bring stablecoins to the XRP Ledger (XRPL).
This was pointed out by Crypto Eri (@sentosumosaba), a notable member of the XRP community in a post on X. According to her, Schwartz mentioned that Ripple was in talks with big banks and major financial institutions to bring stablecoins to the Decentralised Exchange (DEX).
She also mentioned Prisma and these are notable because the host of the live space asked about the current status of Ripple Prisma, an API related to On-Demand Liquidity (ODL) that was referenced in the court documents.
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In response to this, Schwartz clarified that, at the moment, ODL has no integration with DEXs and does not make use of them. However, he emphasized that effort was being made to incorporate the DEX services into ODL, potentially enabling trading against Automated Market Makers (AMMs).
Going further, he expanded on the capabilities of Prisma. He explained that Prisma can leverage liquidity from various exchanges, including DEXs, and break down large transactions into smaller, more manageable parts helping it optimize liquidity utilization.
Big Deal Hampered By The SEC Lawsuit
Schwartz noted that the integration is yet to be completed, citing specific factors that have hindered progress. Chief of these is the need for stablecoins in U.S. Dollars or Euros as requirements for practical implementation.
Schwartz revealed that Ripple had been on the verge of incorporating stablecoin capabilities into the XRPL just before the SEC filed its lawsuit. He explained that the lawsuit caused significant disruptions and halted the progress they had made in stablecoin and DEX integration within ODL. He described the deal they had as close and then said the SEC’s lawsuit torpedoed that deal.
David Schwartz noted:
“We had a deal that I thought was going to close, and then that was two and a half years ago when the SEC filed suit against Ripple, and so that kind of torpedoed that deal.”
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Bill Morgan, a lawyer and notable figure in the XRP community also replied, arguing that this disruption of the deal to issue stablecoins on the XRPL DEX was one of the negative impacts of the SEC’s lawsuit on the broader crypto community.
Surprised this is not getting more attention in the XRP community. If there was a deal with a stablecoin issuer to issue a stablecoin on the XRPL DEX and it was scuppered in late 2020 by the lawsuit it is just another example of how much damage the SEC lawsuit has done. https://t.co/B5zcPJQkVd pic.twitter.com/lZ54sJuVCy
— bill morgan (@Belisarius2020) September 2, 2023
In the end, Schwartz made it clear that Ripple is actively in discussions with major financial institutions and they’re exploring the possibility of launching stablecoins to make the DEX integration more feasible.
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