Ripple is preparing to launch a new stablecoin RLUSD on the XRP Ledger (XRPL) and Ethereum that is pegged to the US dollar. This stablecoin will be fully backed by cash reserves and can be exchanged one-to-one for US dollars.
Features of RLUSD and its impact on XRP demand
To enhance the reliability of RLUSD, Ripple will fully back the stablecoin with cash reserves. This ensures that RLUSD can be exchanged for US dollars at a one-to-one rate. The stablecoin will be traded on the XRP Ledger and the Ethereum blockchain.
Experts suggest that the demand for XRP may increase due to gas fees incurred during RLUSD transactions. A RippleX account manager stated that the XRP Ledger EVM Sidechain will integrate with over 80 blockchains, offering low transaction fees.
Expectation of temporary market fluctuations
David Schwartz noted that market imbalances may occur during the launch process. He pointed out, 'Some users may pay prices above market value for RLUSD in the initial phase. However, this situation will not last long.' He emphasized that the stablecoin will stabilize quickly through market arbitrage.
The collaboration between Ripple and the Axelar Foundation is seen as a step towards making XRPL more compatible with different blockchains. This collaboration aims to bring liquidity and forex-based use cases to the Ripple ecosystem.
Schwartz emphasizes that RLUSD should be used for value storage and transfer rather than as an investment tool. He stated, 'As the market stabilizes, RLUSD will stand out as a reliable stablecoin.'
