RLUSD (Ripple USD) was launched on December 17, 2024 and has already received approval from the New York Department of Financial Services (NYDFS). Like all stablecoins, this coin aims to maintain a 1:1 value against the dollar and at first glance does not differ from other similar coins.
The purpose of this article is to understand what changes Ripple's RLUSD will bring to the cryptocurrency market.
The main differences between RLUSD and its competitors:
1. Transparency:
The NYDFS (New York Department of Financial Services) establishes disclosure requirements and the publication of monthly reports from an independent certified public accountant to audit the reserves that support the stablecoin. This ensures that the stablecoin reserve is accurately reported, managed, and disclosed in a transparent and regular manner.
2. Provision:
The RLUSD reserve consists of a mixture of US dollars and short-term US Treasury bills. I was unable to find the exact percentage, perhaps because such information is not in the project's WP. However, if we compare the main competitor USDT, its percentage of collateral in cash and short-term securities is 82.45%, and USDT also uses corporate bonds, precious metals, secured loans and other investments, including tokens, as collateral.
Against this background, RLUSD looks more secured. In some articles I even found a term that was assigned to this coin - an over-collateralized stablecoin
3. Dominance in your own network:
Unlike other stablecoins, RLUSD will be actively used in the native XRP Ledger network, which has not had a stablecoin up to this point. I believe that this will have a positive effect on the development of the XRPL blockchain as a whole and will give advantages in the development of RLUSD.
However, at the time of writing, the XRP Ledger blockchain has a relatively low rating. According to DefiLama, it is in 53rd place in the overall network rating by TVL:
RLUSD is launched! Where is it now?
Good question, I thought, and looked at the project parameters on Coinmarketcap:
RLUSD currently ranks 3500th in CMC and has a market cap of $53 million. The coin is currently only available on XRPL and Ethereum networks, but plans are in place to expand its reach to other blockchains and decentralized financial protocols and applications. The coin definitely needs to be integrated into other networks, as USDT, for example, operates in more than 20 blockchain networks.
According to CMC, the coin is currently traded on two third-tier exchanges: Bitso and Mercado Bitcoin. However, the official website announced the implementations:
How will the creation of RLUSD affect the price of XRP?
In the long term, it’s definitely positive: RLUSD drives demand for XRP by using it as the primary fuel for transactions within its ecosystem. This has a deflationary effect, reducing the circulating supply of XRP over time. As RLUSD adoption increases, especially in remittances and decentralized finance (DeFi), XRP’s utility and value increases.
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