RLUSD of Ripple: A Strategic Move Towards Stability and Compliance

Ripple officially launched the stablecoin RLUSD on December 17, 2024, after receiving approval from the New York State Department of Financial Services (NYDFS). RLUSD is designed to strictly comply with regulations and is fully backed by USD, U.S. government bonds, and cash-equivalent assets, aiming to create a safe investment environment for financial institutions and individuals. The main goal of RLUSD is to facilitate cross-border payment transactions, helping to enhance efficiency in the global financial system.

Ripple aims to build a robust stablecoin ecosystem to attract institutional investors and increase credibility in the crypto market. To ensure transparency, Ripple will conduct monthly audits by independent third parties. At the same time, connecting with other blockchain networks such as Ethereum and XRP Ledger allows RLUSD to operate more flexibly, helping to reduce costs in international transactions.

The launch of RLUSD is expected to lead to an increase in demand for XRP, as this stablecoin is integrated into Ripple's global payment system, processing transaction volumes of up to 70 billion USD each year. This will strengthen Ripple's competitive position in the stablecoin market, where major competitors like USDT and USDC currently dominate.