Coinspeaker Ripple to Officially Launch Its Fiat-backed Stablecoin RLUSD on December 17
The stablecoin market is set to welcome a new player as Ripple, the blockchain infrastructure provider, prepares to launch its fiat-backed stablecoin, Ripple USD (RLUSD), on Tuesday, December 17. This stablecoin aims to provide a reliable alternative to XRP.
Initially slated for release on December 4, Ripple confirmed that RLUSD will be immediately available on partner platforms like Uphold, Bitso, MoonPay, Archax, and CoinMENA. Additional listings are expected on exchanges such as Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash, with further rollouts on other platforms planned for the coming weeks.
Ripple’s RLUSD Stablecoin to Launch on Ethereum and XRPL
Ripple announced that RLUSD will be supported by a network of leading global exchanges, market makers, and payment providers. This strategic partnership is expected to drive the adoption and usage of the stablecoin across key regions, including the Americas, Asia-Pacific, the UK, and the Middle East.
The launch of RLUSD came shortly after the company received the final approval from the New York Department of Financial Services (NYDFS) on December 11 to introduce the stablecoin into the market.
Ripple first hinted about the possibility of developing its own stablecoin in April this year, after the global payment giant PayPal entered the stablecoin market with the launch of PayPal USD (PYUSD) in August 2023.
At the time, the company revealed that RLUSD would be available on the Ethereum (ETH) blockchain and the XRPL network. This dual approach is designed to enhance the stablecoin’s versatility, with Ripple also eyeing expansion into the decentralized finance (DeFi) space.
After nearly eight months of preparations, RLUSD is finally coming to centralized exchanges and other partner platforms tomorrow to compete with Tether USD (USDT) and Circle USD (USDC), two of the world’s largest stablecoins in the market.
Like the two stablecoins, Ripple’s RLUSD is pegged 1:1 to the value of the United States dollar and is backed by national reserves such as the US dollar deposits, US government bonds, and cash equivalents to maintain its stability in the face of market turmoil.
RLUSD Scheduled to Facilitate Payments Early 2025
However, what sets RLUSD apart from other existing stablecoins is Ripple’s promise to provide monthly attestations of the stablecoin’s reserve. The company will work with independent and third-party auditors to ensure every reserve is accounted for.
The move is part of the company’s efforts to increase transparency within the industry and ensure that users’ assets are fully backed. Ripple has also assured users that the stablecoin is built in full compliance with regulatory standards.
“Early on, Ripple made a deliberate choice to launch our stablecoin under the NYDFS limited purpose trust company charter, widely regarded as the premier regulatory standard worldwide. As the US moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD, which offer real utility and are backed by years of trust and expertise in the industry,” said Brad Garlinghouse, Ripple’s CEO.
Ripple plans to leverage the stablecoin to streamline global payments for its enterprise customers starting in early 2025 through its payment unit. Since its launch, Ripple Payments has facilitated $70 billion in payment volume, with coverage across more than 90 payout markets, accounting for over 90% of the daily FX market.
Ripple Welcomes Two New Board Members for RLUSD
Earlier today, Ripple’s CTO, David Schwartz, cautioned users about the potential volatility that could arise when the stablecoin launches. He mentioned that crypto traders, eager not to miss out, might rush in to take positions (FOMO) which could end up affecting the price of XRP, Ripple’s own 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.
Meanwhile, in addition to the scheduled launch tomorrow, December 17, Ripple has announced that Raghuram Rajan, former Governor of the Reserve Bank of India, and Kenneth Montgomery, former First Vice President and Chief Operating Officer of the Federal Reserve Bank of Boston, will join the RLUSD advisory board.
The pair will lend their expertise by offering strategic guidance on regulatory, financial, and operational matters, helping to ensure RLUSD’s continued stability and growth.
The stablecoin’s advisory board already includes prominent figures such as former Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair, David Puth, Vice Chairman of Partners Capital and former CEO of CENTRE Consortium, and Chris Larsen, co-founder and Executive Chairman of Ripple.
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Ripple to Officially Launch Its Fiat-backed Stablecoin RLUSD on December 17
