Ripple Set to Launch Its Stablecoin RLUSD Today
Ripple has announced today the launch of the highly anticipated US dollar-backed stablecoin RLUSD. The company will work with an independent auditing firm to ensure regular checks of RLUSD's reserve assets and will publish these audit reports monthly.
Ripple states that each token of RLUSD is fully backed by US dollar deposits, US government bonds, and cash equivalents. RLUSD is expected to start trading on global exchanges today, marking Ripple's first stablecoin solution tied to the US dollar.
Increasing Competition in Stablecoins
Ripple is entering the stablecoin market, which includes well-funded firms like Tether, Circle, and Ethena. Traditional fintech companies like PayPal (PYPL) have also launched their dollar-based stablecoins. Currently, Tether leads the market with a supply of over $140 billion.
Ripple CEO Brad Garlinghouse mentioned that launching the stablecoin under an investment company license for a limited purpose, as prescribed by the New York State Department of Financial Services (NYDFS), was a conscious choice. He stated that the US is moving towards clearer regulatory frameworks and expressed hope for increased adoption of stablecoins like RLUSD.
Which Networks Will RLUSD Be Available On?
Ripple announced that RLUSD will initially be available on the XRP Ledger and Ethereum. The company plans to expand to more blockchains, decentralized finance protocols, and applications over time.
Platforms like Uphold, MoonPay, Archax, and CoinMENA will initially list RLUSD, with additional listings expected on platforms such as Bitso, Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash. Ripple stated that it has reached $70 billion in transaction volume in its payments division, announcing that RLUSD will be used for payment transactions for institutional clients early next year.
Positive Impact on XRP
Following the announcement of its stable asset, Ripple's own cryptocurrency XRP also saw a positive price reaction.
XRP jumped to $2.57 with an almost 8% rise within an hour after the announcement. As trading calmed, it began fluctuating around the $2.45 to $2.5 range. This development contributed to XRP's nearly 5% positive differentiation among major altcoins, which mostly trended downwards in the past 24 hours.