Ripple to Officially Launch Its Fiat-backed Stablecoin RLUSD on December 17

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As a seasoned crypto investor with over a decade of experience in this dynamic market, I can’t help but feel a sense of anticipation as Ripple prepares to launch its stablecoin, RLUSD. Having witnessed the rise and fall of numerous projects, I have learned to appreciate the strategic moves made by established players like Rippe.

As a researcher delving into the dynamic world of digital currencies, I’m eagerly awaiting the entry of a new player in the stablecoin market. Ripple, a renowned blockchain infrastructure provider, is set to debut its fiat-backed stablecoin, Ripple USD (RLUSD), on Tuesday, December 17. This innovative currency is designed as a dependable substitute for XRP within our rapidly evolving landscape.

Initially scheduled to launch on December 4th, Ripple has confirmed that RLUSD will be accessible right away on partner platforms like Uphold, Bitso, MoonPay, Archax, and CoinMENA. More listings are anticipated on exchanges such as Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash, with additional rollouts on other platforms expected in the upcoming weeks.

Ripple’s RLUSD Stablecoin to Launch on Ethereum and XRPL

Ripple has revealed that RLUSD will receive support from a wide network of prominent international exchanges, market makers, and payment services. This significant collaboration is anticipated to boost the adoption and utilization of this stablecoin in crucial areas such as North America, Asia, Europe (including the UK), and the Middle East.

Following the receipt of final approval from the New York Department of Financial Services (NYDFS) on December 11, the introduction of RLUSD into the market was quickly initiated.

Back in April, Ripple initially suggested the idea of creating their own stablecoin. This move came as a response to PayPal’s entry into the stablecoin market, which occurred when they launched PayPal USD (PYUSD) in August 2023.

Initially, it was announced that the company’s new stablecoin, RLUSD, would be accessible on both the Ethereum (ETH) blockchain and the XRPL network. This strategy aims to increase the stablecoin’s adaptability, as Ripple also intends to grow its presence in the decentralized finance (DeFi) sector.

Starting tomorrow, after approximately eight months of meticulous planning, RLUSD will be available on major exchanges and partner platforms for competition against Tether USD (USDT) and Circle USD (USDC), two dominant stablecoins in today’s global market.

Similar to two other stablecoins, Ripple’s RLUSD maintains a fixed value equivalent to one U.S. dollar. It is supported by assets such as U.S. dollar deposits, U.S. government bonds, and cash equivalents, which help ensure its stability during market volatility.

RLUSD Scheduled to Facilitate Payments Early 2025

Distinctively, RLUSD stands out among current stablecoins due to Ripple’s commitment to publish regular (monthly) reports verifying the reserves backing the stablecoin. These checks will be carried out by independent and external auditing firms to confirm that every reserve is accurately accounted for.

The action aligns with our company’s commitment to enhancing industry transparency and safeguarding user assets completely. Ripple guarantees that their stablecoin adheres strictly to all relevant regulatory guidelines.

Initially, Ripple strategically decided to introduce our digital currency (stablecoin), recognized globally as the top regulatory standard, under the New York Department of Financial Services’ limited purpose trust company charter. As the United States continues to clarify its regulations, we anticipate a surge in the use of stablecoins like RLUSD, which provide genuine value and are supported by decades of trust and knowledge in the sector,” stated Brad Garlinghouse, CEO of Ripple.

Starting from early 2025, Ripple intends to utilize a stablecoin to make international transactions smoother and more efficient for its business clients. Since its debut, the Ripple Payments system has handled over $70 billion in payment transactions, reaching more than 90 countries for payouts, covering approximately 90% of the daily foreign exchange market.

Ripple Welcomes Two New Board Members for RLUSD

This afternoon, as an analyst, I find myself cautioning about potential volatility surrounding Ripple’s upcoming stablecoin launch. As we all know, crypto enthusiasts, eager not to miss out on this opportunity, may experience FOMO (Fear Of Missing Out) and rush in to secure positions. This mass influx could potentially impact the value of XRP, Ripple’s native digital asset.

Schwartz also said that pre-launch bids for the stablecoin are already inflating its value artificially, with 1 RLUSD currently equaling 511 XRP, which is trading at about $2.47 on CoinMarketCap.

Simultaneously, it’s worth noting that Ripple has made an additional announcement: Raghuram Rajan, a previous Governor of the Reserve Bank of India, and Kenneth Montgomery, a former First Vice President and Chief Operating Officer of the Federal Reserve Bank of Boston, will be joining Ripple’s RLUSD advisory board, effective December 17, alongside the scheduled launch.

As an analyst, I’ll be contributing my knowledge and insights by providing strategic advice on regulatory, financial, and operational aspects. This guidance aims to maintain RLUSD’s stability and foster its ongoing growth.

Notable individuals, like Sheila Bair, who served as the Chair of the Federal Deposit Insurance Corporation (FDIC), David Puth, Vice Chairman at Partners Capital and a former CEO of CENTRE Consortium, and Chris Larsen, co-founder and Executive Chairman of Ripple, are currently part of the advisory board for this stablecoin.

 

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2024-12-16 22:51