Latest / The Paul Barron Crypto Show / XRP Stablecoin Launch ️‍🔥Ripple Payments INTERVIEW w/ Brendan Berry

Transcript

XRP Stablecoin Launch ️‍🔥Ripple Payments INTERVIEW w/ Brendan Berry · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Back here at the Ripple Swell event here in Miami.
• 0:02
  Speaker 1: Today we're gonna be talking with Brendan and he's coming
• 0:05
  Speaker 1: in from Ripple Payments, so it's going to be fun
• 0:07
  Speaker 1: to kind of break down some things. Great to have
• 0:08
  Speaker 1: you on the.
• 0:09
  Speaker 2: Show, Thanks for having me. Great to be here.
• 0:11
  Speaker 1: So Brendan, let's talk about first of all, want to
• 0:13
  Speaker 1: kind of frame it for the audience. In terms of
• 0:15
  Speaker 1: the size of cross border payments. Ripple has been often
• 0:18
  Speaker 1: known as that kind of the cornerstone, the flag in
• 0:21
  Speaker 1: the ground for blockchain. What is that today?
• 0:25
  Speaker 2: You know, the size of cross border payments is unfathomably
• 0:29
  Speaker 2: massive in terms of value moving across borders. You've seen
• 0:32
  Speaker 2: this statistics twenty two fifty six trillion dollars of value
• 0:36
  Speaker 2: moved across borders annually. You've seen other researchers point to
• 0:42
  Speaker 2: numbers far greater than that, and those numbers are really
• 0:44
  Speaker 2: hard to conceptualize, which really just hits on your point,
• 0:48
  Speaker 2: which is there is a ton of money moving across
• 0:52
  Speaker 2: border constantly, and so this is an area which is
• 0:55
  Speaker 2: an obvious insertion point of really trying to make a difference.
• 0:58
  Speaker 1: Swift, of course, has been pretty much the king of
• 1:02
  Speaker 1: the hill when it comes to cross border payments. You're
• 1:04
  Speaker 1: making this much you meaning Ripple, making this much more
• 1:08
  Speaker 1: approachable by businesses, individuals, the retail consumer, but also the
• 1:14
  Speaker 1: entities that currently use Swift as well. When you look
• 1:17
  Speaker 1: at that framework, do you feel like Ripple is poised
• 1:21
  Speaker 1: to kind of really become the de facto cross border
• 1:24
  Speaker 1: payment company.
• 1:25
  Speaker 2: I certainly hope so, and if I didn't, I really
• 1:28
  Speaker 2: wouldn't be here. I have a strong belief in the
• 1:32
  Speaker 2: value that we're providing to customers, and that's how I
• 1:35
  Speaker 2: think we get to the answer your question, de facto
• 1:38
  Speaker 2: becomes are we solving problems at scale in a way
• 1:42
  Speaker 2: that's really differentiated? And I feel like we absolutely are.
• 1:45
  Speaker 2: And when you think about Swift, which is what you
• 1:47
  Speaker 2: anchored the question on, that was technology developed in the
• 1:51
  Speaker 2: sixties specifically for a limited subset of customers. These are
• 1:56
  Speaker 2: very large banks when you think about who that was
• 2:00
  Speaker 2: not developed for everyone else, and so there's such a
• 2:04
  Speaker 2: significant opportunity just looking at the underserved. Underserved includes banks,
• 2:10
  Speaker 2: includes smaller banks who have difficulties establishing, setting up and
• 2:15
  Speaker 2: actually creating a correspondent network of their own. It includes
• 2:20
  Speaker 2: large enterprise customers includes everyone trickling down to the individual
• 2:25
  Speaker 2: remitter or who's trying to send funds to their cousin overseas.
• 2:31
  Speaker 2: And there's so much potential for blockchain to step in
• 2:35
  Speaker 2: and for Ripple and products that we are building that
• 2:38
  Speaker 2: really evangelize the transformative potential of blockchain and create enterprise
• 2:44
  Speaker 2: solutions that are ready to go to solve problems moving
• 2:47
  Speaker 2: funds right now. And in short, I have tons of
• 2:51
  Speaker 2: belief and certainly share that same view of US being
• 2:55
  Speaker 2: a leader in years to come.
• 2:57
  Speaker 1: So real USD playing a big role in this. Yeah,
• 3:00
  Speaker 1: we're going to see stable coined I think development obviously,
• 3:04
  Speaker 1: you look at what Circle is doing with USDC here
• 3:07
  Speaker 1: in the United States, Teather being the behemoth that they are,
• 3:10
  Speaker 1: and also the potential from a regulatory standpoint, a lot
• 3:13
  Speaker 1: of opportunity here in the next possibly twelve months that
• 3:17
  Speaker 1: we could see huge changes which would really shift the
• 3:21
  Speaker 1: business side of things, because there's a lot of companies
• 3:23
  Speaker 1: that would immediately move to this if they had stable
• 3:26
  Speaker 1: coin access totally. You know, real time. How does this
• 3:30
  Speaker 1: you know, the landscape as it is right now play
• 3:32
  Speaker 1: out with what you guys are doing future plans.
• 3:34
  Speaker 2: Yeah, and I think what you were getting at is
• 3:36
  Speaker 2: looking to the future and seeing a lot of opportunity,
• 3:39
  Speaker 2: and we share that same viewpoint. So regardless of what
• 3:43
  Speaker 2: you look at, there's a lot of forecasts that project
• 3:46
  Speaker 2: this market is growing and growing tremendously quickly. There are
• 3:49
  Speaker 2: a lot of catalysts for that. You pointed to regulation
• 3:53
  Speaker 2: or just institutional comfort more broadly, but regardless of that catalyst,
• 3:57
  Speaker 2: this market is growing and there's a lot of opportunity.
• 4:00
  Speaker 2: We view ourselves as having a place in really coming
• 4:05
  Speaker 2: to market with a trusted and compliant, FIAT backed US
• 4:10
  Speaker 2: dollar stable coin that's issued on the XRPL as well
• 4:13
  Speaker 2: as the Ethereum ledger and some of the opportunities that
• 4:17
  Speaker 2: we're seeing more tangibly today. There's a lot of assets
• 4:21
  Speaker 2: that are being tokenized and brought on chain, but for
• 4:25
  Speaker 2: the transformative potential of real world asset tokenization to really
• 4:29
  Speaker 2: take off, you need an enterprise grade stable coin that
• 4:33
  Speaker 2: is liquid for that to really add value to consumers,
• 4:37
  Speaker 2: whether that's a tokenized investment vehicle or similar. And that's
• 4:43
  Speaker 2: where we think that we can add a lot of
• 4:45
  Speaker 2: value within the market is just bringing more liquidity to
• 4:49
  Speaker 2: enterprise grade trusted compliance stable coins.
• 4:52
  Speaker 1: What would Ripple be doing to possibly lower fees in
• 4:55
  Speaker 1: the future.
• 4:56
  Speaker 2: Well, when you think about lowering fees and a status
• 4:59
  Speaker 2: quo today, you have very opaque fee structures. Oftentimes the
• 5:05
  Speaker 2: end recipient of funds or the originator of those funds
• 5:10
  Speaker 2: don't even know what they're paying because there's so little
• 5:13
  Speaker 2: transparency along the flow, let alone the payment flow. And
• 5:18
  Speaker 2: why is that. A lot of the users of legacy
• 5:22
  Speaker 2: cross border payment systems experience fees in the form of
• 5:26
  Speaker 2: leveraging technology, whether that be Swift or an international wire.
• 5:30
  Speaker 2: They experience cost in the form of trapping capital in
• 5:34
  Speaker 2: a destination market to make that available to pay out
• 5:37
  Speaker 2: for an end beneficiary. We are creating, and have created
• 5:42
  Speaker 2: and have in market Ripple Payments, which is a product
• 5:45
  Speaker 2: that allows people to move funds on demand, so the
• 5:48
  Speaker 2: same and with transaction costs that are less than a penny.
• 5:53
  Speaker 2: So you're taking an incumbent solution that's wrought with cost
• 5:58
  Speaker 2: of trap capital, cost of transaction fees and removing those
• 6:03
  Speaker 2: barriers so that you can really deliver a better solution
• 6:07
  Speaker 2: really at a competitive price point.
• 6:09
  Speaker 1: What was one of the big announcements that you guys
• 6:11
  Speaker 1: made in terms of real USD happening today here at Ripple.
• 6:15
  Speaker 2: Yeah, so today we're in Miami for Ripple's customers conference
• 6:20
  Speaker 2: as well, and we just announced today a large number
• 6:23
  Speaker 2: of different partners who will be going live supporting RLUSD.
• 6:29
  Speaker 2: And these are digital asset exchanges such as bitstamp or bitso,
• 6:33
  Speaker 2: as well as exchanges within the Middle East and Southeast Asia,
• 6:38
  Speaker 2: as well as leading market makers who will be supporting
• 6:42
  Speaker 2: liquidity and order book depth across those exchanges. And that
• 6:46
  Speaker 2: ties to what I was saying earlier, which the world
• 6:50
  Speaker 2: needs more liquid, trusted compliance stable coins, and these partners
• 6:55
  Speaker 2: will be really instrumental in helping us make that a reality.
• 6:59
  Speaker 1: This is a pretty big leap forward. How long before
• 7:01
  Speaker 1: you start to see kind of the onslaught of partners
• 7:04
  Speaker 1: Those are usually kind of the early edge adopters in
• 7:08
  Speaker 1: the space. When will we I know it's new for
• 7:11
  Speaker 1: real ust but what is the likelihood of us seeing
• 7:15
  Speaker 1: where real USD is in a year from now? What
• 7:18
  Speaker 1: do you think is going to work?
• 7:19
  Speaker 2: You know, I really wish I had a crystal ball,
• 7:21
  Speaker 2: And these are one of those questions where if I did,
• 7:24
  Speaker 2: I think across my life, I would be a lot happier.
• 7:27
  Speaker 2: But I don't have a crystal ball. But what I
• 7:29
  Speaker 2: will say is, well, we did announce were the first
• 7:32
  Speaker 2: of many partnerships to come. These are partners who we've
• 7:37
  Speaker 2: been working with closely and are taking the leap with
• 7:40
  Speaker 2: us on a stable coin that's not even live in
• 7:43
  Speaker 2: the market yet today. And I do think it's tests
• 7:46
  Speaker 2: amount that we've been able to bring forth so many
• 7:49
  Speaker 2: really high quality centralized exchanges as well as market makers
• 7:53
  Speaker 2: with us even before a public launch.
• 7:57
  Speaker 1: Well that's the advantage right there, is you've got pretty
• 8:00
  Speaker 1: big players here that are stepping into play pretty quickly
• 8:03
  Speaker 1: and early, which is good. As far as regulatory alignment,
• 8:07
  Speaker 1: you look at real USD, the NYDFS potential approval, what
• 8:12
  Speaker 1: does that look like in terms of a landscape. We
• 8:15
  Speaker 1: could see a regulatory framework very soon. Also on just
• 8:19
  Speaker 1: stable coins. What are your what's your opinion on that
• 8:22
  Speaker 1: of how that's going to go forward?
• 8:23
  Speaker 2: Well, what's my opinion? I think regulatory clarity is a
• 8:28
  Speaker 2: great thing. I think the industry more broadly, not just
• 8:31
  Speaker 2: specific to stable coins, when I think of the crypto
• 8:33
  Speaker 2: industry overall, has really needed and wanted regulatory clarity, not
• 8:39
  Speaker 2: just in the United States, but internationally, and you've seen
• 8:43
  Speaker 2: a lot of economic activity and businesses flow to countries
• 8:49
  Speaker 2: that have regulatory clarity because there's great potential from this technology.
• 8:54
  Speaker 2: There's consumers that are really having visceral pain points that
• 8:59
  Speaker 2: can be solved by but regulatory clarity or the lackterof
• 9:03
  Speaker 2: has been a hindrance. So I'm bullish. I think that
• 9:06
  Speaker 2: common sense will prevail and across not just the United
• 9:10
  Speaker 2: States but in many other geographies. We'll start to see
• 9:14
  Speaker 2: a lot more regulatory clarity in twenty twenty five, and
• 9:19
  Speaker 2: I'm excited. I'm excited by the potential that that will
• 9:22
  Speaker 2: have and the impact that that will make on businesses
• 9:24
  Speaker 2: and retail consumers are.
• 9:26
  Speaker 1: Like, well, I think we're in a position now with
• 9:28
  Speaker 1: the industry that maybe, now that the Harris camp has
• 9:31
  Speaker 1: come out and actually given us a little bit of
• 9:33
  Speaker 1: a framework what their expectations are. Yeah, so that's positive.
• 9:37
  Speaker 1: We kind of already knew where the Trump camp was
• 9:39
  Speaker 1: coming from, so it looks like we might have an
• 9:41
  Speaker 1: administration that could be pro digital assets, which should be
• 9:44
  Speaker 1: a good thing in general, regardless of who wins. But
• 9:48
  Speaker 1: when you look at products now and you think about
• 9:51
  Speaker 1: the landscape and also just the roadmap in general for
• 9:53
  Speaker 1: a ripple and where this could take you in terms
• 9:56
  Speaker 1: of products and services, what are some of the ones
• 9:59
  Speaker 1: that are kind of low hanging fruit for you guys
• 10:00
  Speaker 1: in terms of products that we're bringing to markets to market. Yeah,
• 10:03
  Speaker 1: so I think today we have three major product lines.
• 10:07
  Speaker 1: We have our cross border payment solution, which is ripel payments.
• 10:10
  Speaker 1: We have a digital asset custody solution, as well as
• 10:14
  Speaker 1: we have RLUSD, which we've talked about. One of the
• 10:17
  Speaker 1: biggest opportunities that we see is bringing URLUSD within our
• 10:21
  Speaker 1: cross border payment solution, leveraging it as a bridge asset
• 10:25
  Speaker 1: as we are moving assets across the globe on behalf
• 10:29
  Speaker 1: of enterprise customers, and we want to continue to lean
• 10:33
  Speaker 1: into the value that this payout network that we've created
• 10:38
  Speaker 1: will provide our customers. And when you think about kind
• 10:41
  Speaker 1: of going back to a topic that we touched on before,
• 10:44
  Speaker 1: technology that was constructed for some but not for all
• 10:48
  Speaker 1: and people being left out, the same is true in
• 10:51
  Speaker 1: a modern context when you think of a lot of
• 10:53
  Speaker 1: different crypto natives who have been underserved by financial institutions,
• 10:59
  Speaker 1: and we have products and services that will tremendously add
• 11:03
  Speaker 1: value for them. We're expanding upon our crypto off ramp network,
• 11:08
  Speaker 1: launching a new on ramp product in addition to our
• 11:10
  Speaker 1: cross border payment solution. So we really see ourselves as
• 11:14
  Speaker 1: someone who can lean in and help crypto natives of
• 11:18
  Speaker 1: all sizes, and that's an area where we will be
• 11:22
  Speaker 1: investing a lot in twenty twenty five. Let's talk about
• 11:25
  Speaker 1: the framework of the existing payment systems that are out there.
• 11:29
  Speaker 1: You look at zell Venmo, a handful of those, even
• 11:31
  Speaker 1: PayPal to a certain extent. How does Ripples, real USD
• 11:36
  Speaker 1: and what you're doing in cross border payments really bringing
• 11:39
  Speaker 1: it down to use case going to affect those kinds
• 11:41
  Speaker 1: of companies. Do you feel like this is going to
• 11:43
  Speaker 1: be a competitive landscape or something else.
• 11:45
  Speaker 2: Yeah, So when I think about the companies that you mentioned,
• 11:48
  Speaker 2: most of them are really servicing P two P peer
• 11:51
  Speaker 2: to peer payments within a single country, and that's not
• 11:56
  Speaker 2: the space where we play. We mentioned starting looking at
• 12:00
  Speaker 2: how big cross border payments is. That's our focus. The
• 12:04
  Speaker 2: fifty six plus trillion dollars that are moving across border
• 12:07
  Speaker 2: every year. It's a massive space. There's certainly a lot
• 12:11
  Speaker 2: of opportunity for many participants in that space, and where
• 12:16
  Speaker 2: we are adding value is when a business, whether that
• 12:19
  Speaker 2: be a bank or cryptonative, needs to move funds across border,
• 12:24
  Speaker 2: they can do so using our product and have funds
• 12:27
  Speaker 2: move in real time moving twenty four seven, three, six
• 12:31
  Speaker 2: y five, having them settle instantly and then paid out
• 12:35
  Speaker 2: and beneficiary in ways that quite frankly, they can't access
• 12:39
  Speaker 2: that same sort of value proposition today, whether that be
• 12:43
  Speaker 2: either through being forced to leverage legacy technology which settles
• 12:47
  Speaker 2: in a matter of business days not days, not minutes,
• 12:51
  Speaker 2: limited to banking hours, or they're just quite frankly difficult
• 12:56
  Speaker 2: having difficulty finding partners that will serve them, which is
• 12:59
  Speaker 2: the case with many cryptonatives.
• 13:01
  Speaker 1: Well that's getting to be a big problem too, just
• 13:02
  Speaker 1: what we've seen around Operation choke Point, but also in
• 13:06
  Speaker 1: general globally it is getting a little bit more friendly,
• 13:10
  Speaker 1: I would say, at least in the last twelve months
• 13:12
  Speaker 1: we've seen a little bit more open up, but I
• 13:14
  Speaker 1: think that's still going to be a huge market opportunity.
• 13:16
  Speaker 1: Let's talk about roadmap and the impact from XRPL and
• 13:20
  Speaker 1: how it all plays into what your strategy is.
• 13:23
  Speaker 2: Yeah, So starting with XRPL, I mean, that's really the
• 13:26
  Speaker 2: foundation for everything. The XRPL was built as a protocol
• 13:31
  Speaker 2: and a ledger that moves value, whether that be XRP
• 13:37
  Speaker 2: or a tokenized asset on the ledger in a very
• 13:41
  Speaker 2: low cost, high efficient manner, and from a blockchain or
• 13:46
  Speaker 2: foundational technology perspective, it's best in class. So we built
• 13:51
  Speaker 2: our product on top of the ledger. We leverage XRPL assets,
• 13:55
  Speaker 2: whether that be XRP or rl USD in our flow
• 14:01
  Speaker 2: such that we can move we can allow us to
• 14:06
  Speaker 2: facilitate a payment across borders in real time, and that's
• 14:09
  Speaker 2: only possible because of the quality and the functionality of
• 14:14
  Speaker 2: the XRPL.
• 14:16
  Speaker 1: Very nice, Brendan Barry. Great to have you on. Yeah,
• 14:18
  Speaker 1: thank you, got the payment's over repel you guys. Make
• 14:20
  Speaker 1: sure and stay tuned right here. We've got a couple
• 14:22
  Speaker 1: more interviews that will be bringing to you directly from
• 14:25
  Speaker 1: Swell twenty twenty four and we'll catch you soon right
• 14:28
  Speaker 1: here on tech That Thanks