Ripple has officially announced the launch of RLUSD, a stablecoin that is fully backed by U.S. dollar reserves. Set to make its debut on December 17, RLUSD has received the necessary green light from the New York Department of Financial Services (NYDFS) as of December 10. This stablecoin is designed to give users peace of mind as it is backed by a combination of U.S. dollar deposits, government bonds, and cash equivalents.
Initially, RLUSD will be accessible through platforms like Uphold, MoonPay, Archax, and CoinMENA. In the not-so-distant future, Ripple plans to expand RLUSD’s reach to prominent exchanges such as Bitso, Bitstamp, Bullish, Mercado Bitcoin, Independent Reserve, and Zero Hash. With an eye towards enhancing its payment and cross-border settlement capabilities, Ripple envisions RLUSD being integrated into its digital payment protocol by early 2025.
To assure users of RLUSD’s stability and integrity, Ripple will provide monthly independent attestations of its reserves. This commitment to transparency is fundamental to building trust within the cryptocurrency community. Furthermore, Ripple has secured a limited-purpose trust company charter from the NYDFS, reinforcing its dedication to regulatory compliance.
While RLUSD will not initially be available in the European Union due to MiCAR regulations, Ripple is exploring options to introduce the stablecoin to this market in the future. To bolster RLUSD’s development, Ripple has assembled an advisory board featuring prominent figures such as Raghuram Rajan, former Governor of the Reserve Bank of India; Kenneth Montgomery, former COO of the Federal Reserve Bank of Boston; Sheila Bair, former FDIC Chair; and Chris Larsen, Ripple’s co-founder. This board’s mission is to amplify RLUSD’s utility while addressing regulatory hurdles and refining operational strategies.
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David Schwartz, Ripple’s CTO, has emphasized that RLUSD’s primary focus will be on payments and remittances, steering clear of speculative trading. He has warned that initial supply limitations might lead to price fluctuations, but reassured that the stablecoin is structured to maintain a consistent value of $1. Although early trading has seen some speculators paying premiums, Ripple is firmly focused on RLUSD’s use for tokenized assets, decentralized finance (DeFi), and overall financial innovation.
With RLUSD, Ripple is ready to compete with established players such as Tether’s USDT and Circle’s USDC. Its extensive payments network, which has already facilitated $70* billion* in transactions across *90 markets*, is positioned to support RLUSD’s quick adoption. This stablecoin aims to serve both businesses and institutions by offering faster, cost-effective transaction solutions, enabling tokenized asset trading, and expanding options for blockchain-based financial activities.
With its emphasis on transparency, regulatory compliance, and practical utility in payments, Ripple is poised to shake up the stablecoin market. The launch of RLUSD represents a significant step in Ripple’s plans to fortify its position within the evolving ecosystems of blockchain-based finance and decentralized finance solutions.
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