Ripple’s Stablecoin RLUSD Launches Today, Here’s What Users Need to Know
Coinspeaker Ripple’s Stablecoin RLUSD Launches Today, Here’s What Users Need to Know
Ripple’s highly anticipated RLUSD stablecoin is set to launch today, December 4, after gaining approval from the New York Department of Financial Services. The preliminary listing for RLUSD has already appeared on some of the major crypto data platforms.
However, blockchain company Ripple has warned against some fake tokens claiming to be RLUSD unless there is an official launch announcement.
Ripple first introduced the RLUSD stablecoin in early June as a USD-pegged stablecoin at a 1:1 ratio, backed 100% using USD deposit, short-term US treasury and other cash equivalents. In August, Ripple pushed RLUSD into the beta testing phase on its decentralized public blockchain platform alongside mainnet Ethereum and the XRP Ledger (XRPL).
The company is also keen to expand its RLUSD stablecoin to other blockchain networks and DeFi platforms over time. Amid the excitement surrounding the launch of RLUSD, Ripple’s native XRP has surged 440% in the past month, breaking into the top three cryptocurrencies.
Following the launch of RLUSD, Ripple plans to use the stablecoin alongside XRP for cross-border payments. Ripple CEO Monica Long has stated that RLUSD’s design is “complementary and additive” to XRP. Sources indicate that Ripple sees RLUSD as “beneficial” to XRP while pairing them together.
Furthermore, XRP will further increase liquidity for RLUSD through its widespread presence on exchanges. Furthermore, Ripple will ensure the stabilization of RLUSD through pegging with XRP to prevent any kind of de-pegging.
Ripple's RLUSD Stablecoin Will Target Institutional Players
By launching RLUSD, Ripple is eyeing a slice of the rapidly growing stablecoin market, which presents a multi-trillion dollar market opportunity by 2030. Reports suggest that this could provide stiff competition to dominant players like Tether’s USDT and Circle’s USDC.
However, Ripple CEO Brad Garlinghouse recently stated that the RLUSD stablecoin will primarily target institutional players. During an initial conversation in September, Garlinghouse said:
“We believe there is an opportunity for another player in the stablecoin market that is focused on institutions, focusing on compliance. “Obviously there was a big event last spring in the US, 18 months ago, where USDC de-pegged, and we felt there was an opportunity for a credible player that is already working with a lot of financial institutions to enter that market.”
Last week, Ripple reportedly carried out a significant token burn of around 47 million RLUSD stablecoins. The Ripple Stablecoin Tracker account announced that 46,676,120 RLUSD tokens were burned in a single day, significantly reducing the supply by removing the majority of these minted tokens from circulation.
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Ripple’s RLUSD Stablecoin Launches Today, Here’s What Users Need to Know#TopCoinsSeptember
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