Stablecoins move from tools for crypto entrepreneurs to the spine of global finance and represent a “significant change for global payment,” Jack McDonald, senior vice president of Stablecoins at Ripple, said Wednesday at Consensus 2025 in Toronto.
Speaking of a recent panel next to Consumer’s Crypto Exchange leader Mark Greenberg, McDonald argues that increasing stablecoins marks a “evolution” on how money is moving worldwide. “This is an alternative way of making the US dollar payment, but it is done in a frictionless, cost-effective way,” he said.
Ripple’s entry into the space with RLUSD, a fully backed and regulated stablecoin, is part of a wider push to replace the outdated, fragmented cross-border payment systems. “We saw the use of stablecoins in payments, and that was the main driver for us to enter the business,” McDonald said.
Greenberg emphasizes the efficiency of the current financial system. “It’s way, it’s too hard to move money around the world,” he said. “Stablecoins is the answer to that, and I think what we see now is a tipping point.”
Kraken is a founding member of Global Dollar NetworkA crypto consortium and traditional financial companies that release USDG Stablecoin.
Both executives said the yield-bearing stablecoins are the next border-but regulators are not yet.
“If you are holding deposits, you should earn the deposits,” said Kraken’s Greenberg, even though he noted different regulations in the constituents. For example, USDG cannot pay produce in the European Union according to MICA rules.
McDonald said Ripple wants to offer a harvest in Stablecoin but will need to register with RLUSD as a security in the US “That is a different journey,” he said.
Over the next five years, both executives have agreed that the Stablecoins are set to reinstate traditional finances as they become more and more places. McDonald pointed out that Ripple was taking Prime Broker Hidden Road as a major step towards the use of Stablecoins as collateral and cross-Marar in capital markets.
Greenberg said he sees the Stablecoins that have become a financial system that “no one talks about them -such as no talk about swift or wires.”
Read more: Stablecoins to go mainstream in 2025 after the development of US regulation: Deutsche Bank
