Ripple Engineer Drops Major Statement for XRP Army On the New Open USD

The launch of the Open USD (OUSD) stablecoin consortium has quickly become one of the most closely watched developments in the digital asset industry.

Backed by more than 140 companies, including financial and technology leaders such as Visa, Mastercard, Stripe, Coinbase, and BlackRock, the initiative aims to reshape how stablecoins are issued and used in institutional finance.

Against that backdrop, former Ripple engineer Matt Hamilton stated that the announcement validates design decisions made when the XRP Ledger (XRPL) was created in 2012, contending that its architecture anticipated today’s institutional stablecoin model more than a decade ago.

Crypto journalist Wendy O highlighted Hamilton’s comments in an X post, reporting that he believes the new Open USD consortium demonstrates how XRPL’s original design was significantly ahead of its time.

According to Hamilton, the ledger was built with native stablecoin issuance and a built-in decentralized exchange (DEX), features that are now becoming central to the next generation of institutional digital payment networks.

Hamilton Says XRPL Was Designed for a Multi-Stablecoin Future

Hamilton’s main argument centers on the vision behind the XRP Ledger when it was introduced in 2012. Rather than assuming a future dominated by one or two stablecoins, the ledger’s architects expected banks, payment providers, and financial institutions to issue their own digital fiat currencies.

To support that vision, the XRPL included native token issuance directly at the protocol level. It also incorporated a built-in decentralized exchange capable of allowing different issued assets to trade with one another without relying on external applications or additional infrastructure.

Hamilton suggested that Open USD reflects that original concept. Instead of relying on a single issuer, the consortium enables multiple participating organizations to mint and manage digital dollars within a shared ecosystem. In his view, this represents the same multi-issuer framework that the XRPL was designed to accommodate years before institutional demand for stablecoins emerged.

Open USD Signals a Different Stablecoin Model

The Open USD consortium represents a notable departure from the dominant stablecoin structure that has defined the market for years. Traditionally, companies such as Circle and Tether have controlled issuance while retaining the revenue generated from the reserves backing their tokens.

The new consortium instead promotes a collaborative approach by allowing participating organizations to issue tokens while also sharing reserve-related economic benefits. Supporters believe this structure could encourage broader institutional participation and reduce dependence on a single stablecoin provider.

The involvement of major financial companies has also strengthened the view that stablecoins are increasingly being positioned as infrastructure for mainstream payments rather than tools used primarily within cryptocurrency markets.

Native Infrastructure Versus Layered Solutions

Hamilton also drew attention to the technical differences between XRPL and many blockchain networks supporting stablecoins today.

According to his assessment, the XRP Ledger integrated token issuance and decentralized trading directly into its base layer from the beginning. By contrast, many modern blockchain ecosystems depend on combinations of smart contracts, bridges, and layer-2 solutions to provide comparable functionality.

His comments also arrive as Ripple serves as an integration partner for the Open USD ecosystem, allowing support for the consortium’s stablecoin infrastructure on the XRP Ledger.

While Hamilton described Open USD as evidence that XRPL’s original architecture anticipated today’s institutional direction, the broader significance extends beyond a single blockchain.

The emergence of large-scale, multi-issuer stablecoin initiatives suggests that financial institutions are increasingly embracing models that resemble concepts introduced during blockchain’s early years.

As institutional adoption continues to expand under a more defined regulatory environment, Hamilton believes the principles embedded in the XRP Ledger in 2012 are now receiving broader recognition.

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 advised to conduct thorough 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.

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