Compass Investments

– One of the first firms to aim for a strategic stockpile of XRP has decided to accept payments in RLUSD for its electric car subsidiary instead of Ripple’s own volatile token.

the company said that using stablcoin will speed up operations while reducing costs.

VivoPower International PLC announced the news on Sept. 8, indicating that its electric vehicle subsidiary Tembo e-LV has started accepting Ripple’s stablecoin token, RLUSD, which was launched less than a year ago.

Tembo is positioning itself as a company looking for practical solutions to the real problems of traditional international wire transfers, which are often accompanied by long waits and high fees.

The press release states that RLUSD will enable cross-border transfers “almost instantly” and “at a fraction of the cost” of conventional bank transfers. Stablecoin also guarantees security for users, as it is pegged 1:1 to the U.S. dollar and is fully covered by dollar deposits, short-term U.S. Treasury bills and other cash equivalents.

According to the statement, the expected benefits of using RLUSD instead of traditional transfers include:

Improved efficiency: Faster transaction processing, especially for international customers and partners.

Reducing costs: Reducing fees and delays typical of bank channels and fiat currencies.

Support innovation: Facilitate the adoption of enterprise-ready digital assets that meet stringent audit and compliance requirements.

Enhancing Treasury Capabilities: Strengthening the company’s digital assets and decentralized finance (DeFi) strategy.

The move, also announced on the X platform, raised questions among some users as to why the firm chose to focus exclusively on stablecoin, leaving Ripple’s better-known and larger market capitalization asset, XRP, in the shadows.

Although it is not mentioned in the official statement, the most likely reason was to avoid price volatility against traditional instruments such as the US dollar. Both tokens work as cross-border funds, but RLUSD maintains a fixed value to the dollar, while XRP is subject to strong fluctuations.