A viewer asked: Question, are OUSD is backed by dollars? This recording is Jake Claver's answer, in full and unedited.
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What this recording covers
Reserve-backed stablecoins maintain capital collateral requirements that preserve the underlying necessity for neutral digital bridge assets in interbank settlement. Addressing a viewer question regarding whether Ripple USD eliminates the utility of XRP, Claver explains that fiat-pegged tokens are backed by cash equivalents and government treasury instruments rather than physical banknotes. Because stablecoins require pre-funded reserves, relying solely on pegged tokens forces financial institutions to maintain extensive bilateral correspondent banking balances across multiple counterparties. This pre-funding model locks up vast quantities of global capital in correspondent accounts. In contrast, utilizing a decentralized exchange with a neutral digital bridge asset enables real-time settlement without requiring institutions to hold advance reserves in every foreign currency or private stablecoin. Claver explains that bridging transactions through native ledger assets unlocks trapped capital by eliminating correspondent account pre-funding requirements across financial institutions.
Where this fits
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