Ripple has announced the official launch of its enterprise-grade RLUSD stablecoin today, December 17, 2024.
Meanwhile, the stablecoin, designed to focus on utility, trust, and regulatory compliance, is now available for trading worldwide.
Backing and Transparency of RLUSD
Ripple confirmed that RLUSD is backed by a mix of U.S. government bonds, USD deposits, and other cash equivalents. To maintain trust and transparency, Ripple will publish monthly third-party attestations to verify the reserves supporting RLUSD.
The stablecoin will initially operate on two major blockchain networks—XRP Ledger (XRPL) and Ethereum. Ripple provided the contract addresses as rMxCK…8m5De for XRPL and 0x829…317eD for Ethereum.
The company highlighted that RLUSD leverages Ripple’s expertise in both financial systems and blockchain technology to provide users with a reliable asset that can be used for payments and as a store of value amid market volatility.
Regulatory Approval and Distribution
The launch follows approval from the New York Department of Financial Services (NYDFS), a key regulatory milestone. Earlier this year, Ripple acquired Standard Custody, an NYDFS-chartered limited-purpose trust company, to ensure regulatory compliance. Standard Custody will oversee the distribution of RLUSD to crypto exchanges globally.
Ripple CEO Brad Garlinghouse highlighted the significance of regulatory compliance, stating,
“Launching RLUSD under the NYDFS charter ensures it meets the highest regulatory standards, setting it up for widespread adoption.”
Exchanges Listing RLUSD
Ripple confirmed that RLUSD will initially be listed on five exchanges: Archax, Bitso, CoinMENA, MoonPay, and Uphold. Ripple also noted that the stablecoin will soon become available on additional platforms, including Mercado Bitcoin, Bitstamp, Zero Hash, Independent Reserve, and Bullish.
An enterprise-grade stablecoin for everyone. Ripple USD ($RLUSD) drops tomorrow on @UpholdInc, @MoonPay, @CoinMENA, @ArchaxEx and @Bitso, with @bullish, @mercadobitcoin, @ZeroHashX, @indepreserve, and @Bitstamp soon to follow. https://t.co/k3DrWO4PXA
— Brad Garlinghouse (@bgarlinghouse) December 16, 2024
The company stated that further exchange partnerships will be announced in the coming weeks to expand RLUSD’s accessibility. The initial listings are expected to make the stablecoin widely available for users looking for a secure and regulated digital asset.
Advisory Board and Financial Experts
To support RLUSD’s growth and stability, Ripple established an advisory board featuring prominent financial industry leaders. The board includes Ripple Chairman and Co-founder Chris Larsen, former FDIC Chair Sheila Bair, and former CENTRE Consortium CEO David Puth.
Ripple has also added two new members to the board: former Reserve Bank of India Governor Raghuram Rajan and former Federal Reserve Bank of Boston COO Kenneth Montgomery.
The advisory board will focus on providing guidance on financial and regulatory matters to ensure RLUSD remains a stable and trusted asset in the global market.
XRP Price Increases Following RLUSD Announcement
The announcement of RLUSD’s launch had a positive effect on the price of XRP, Ripple’s native cryptocurrency. XRP climbed from $2.36 to a daily high of $2.56 shortly after the news, reflecting an 8.47% increase.
At the time of writing, XRP was trading at $2.54, showing a 5.43% gain over the last 24 hours and a 14.35% rise over the past week. XRP currently has a circulating supply of 57 billion tokens, with a market capitalization of over $145 billion.
Ripple plans to integrate RLUSD into its existing payment solutions alongside XRP, offering users a reliable option for transactions while addressing volatility in the crypto market.
The RLUSD launch marks a significant step for Ripple as it combines regulatory compliance, transparency, and institutional expertise to deliver a stablecoin tailored for global use.
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