Ripple CTO #DavidSchwartz has raised concerns about potential supply shortages during the initial release of RippleUSD (RLUSD), the company's newly announced USD-backed stablecoin. Pre-launch activity has already sparked speculative bids, including an offer of 511 XRP (equivalent to $1,244) for just 1 RLUSD, as seen on Xaman, a Ripple-affiliated wallet.
𝐒𝐜𝐡𝐰𝐚𝐫𝐭𝐳 attributed such bids to overenthusiastic users seeking the distinction of being early adopters. He emphasized that once the stablecoin's supply normalizes, its value should align with $1, as intended. “If the price does not stabilize around $1, then something is seriously wrong,” 𝐒𝐜𝐡𝐰𝐚𝐫𝐭𝐳 noted, while urging the community to avoid impulsive purchases fueled by fear of missing out (FOMO). He clarified that RLUSD's introduction is not an opportunity for quick profits.
Ripple CEO 𝐁𝐫𝐚𝐝 𝐆𝐚𝐫𝐥𝐢𝐧𝐠𝐡𝐨𝐮𝐬𝐞 recently revealed that the New York Department of Financial Services has approved the issuance of RLUSD, marking a major milestone in Ripple's mission to expand its cross-border payments ecosystem. The company plans to integrate RLUSD with its flagship cryptocurrency, XRP, to enhance liquidity and reduce risks of depegging. Ripple President Monica Long described the stablecoin as "complementary and additive" to XRP, further strengthening its role in global payments.
Targeted primarily at institutional clients, RLUSD is positioned as a key component in Ripple's broader strategy to transform financial markets. By pairing RLUSD with XRP, Ripple aims to increase stablecoin liquidity across major exchanges. Despite the excitement surrounding RLUSD’s potential, critics have questioned Garlinghouse's recent engagements, including speculations about a meeting with President-elect Donald Trump. These allegations, combined with broader debates around central bank digital currencies (CBDCs), have stirred controversy within the industry.
Ripple remains steadfast in its efforts to expand the adoption of XRP and RLUSD while navigating the challenges of a rapidly evolving crypto landscape.
