December 16, 2024
Ripple has announced the official launch of its RLUSD stablecoin, scheduled for Tuesday, December 17. The move marks a significant step for the blockchain company as it continues to expand its offerings in the digital asset space.
XRP jumped nearly 8% in the last hour following the announcement.
Ripple's Stablecoin RLUSD Influences Bullish Catalyst for XRP
According to Ripple, an independent audit firm will oversee monthly certifications of RLUSD reserve assets to maintain transparency.
Initially, the RLUSD stablecoin will be available on platforms such as Uphold, MoonPay, Archax, and CoinMENA. Additional exchanges, including Bitso, Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash, are expected to add RLUSD soon.
“As the US moves towards clearer regulations, we expect to see greater adoption of stablecoins like RLUSD, which offer real utility and are backed by years of industry trust and experience,” said Brad Garlinghouse, CEO of Ripple.
Meanwhile, the announcement sparked a surge in the price of XRP, which jumped nearly 7% in the hour following the news. XRP’s daily trading volume has surged nearly 72%, contributing to a 130% price increase over the past month. Last week, the stablecoin received approval from the New York Department of Financial Services (NYDFS), paving the way for its launch.
Ripple plans to integrate RLUSD into its payment solutions early next year, allowing corporate clients to make global transactions. The initiative highlights Ripple’s commitment to improving cross-border payment efficiency for institutional clients.
Ripple has also appointed prominent banking experts to its stablecoin advisory board, including Raghuram Rajan, former governor of the Reserve Bank of India, and Kenneth Montgomery, former senior vice president and chief operating officer of the Federal Reserve Bank of Boston.
“Why RLUSD? Fully backed by USD deposits, US government bonds and other fiat alternatives with monthly third-party audits, multi-chain support, designed for cross-border payments, DeFi integration, and a bridge between fiat and crypto,” Ripple wrote on X (formerly Twitter).
The fourth quarter was particularly favorable for Ripple. SEC Chairman Gary Gensler, a prominent critic of XRP, recently announced his resignation. Since then, XRP’s price has reached its highest level in nearly six years.
Meanwhile, cryptocurrency advocate Paul Atkins has taken over. This change in leadership has sparked optimism for Ripple. The company has been embroiled in a long legal battle with the SEC over XRP. The lawsuit has hampered XRP’s performance during previous market rallies.
When it enters the US market, RLUSD will compete with leading stablecoins, including Tether’s USDT and Circle’s USDC. The launch also coincides with growing institutional interest in XRP.
So far, four major asset management firms—WisdomTree, Bitwise, 21Shares, and Canary Capital—have applied for XRP ETFs, signaling confidence in the altcoin.
Recent developments in Ripple and its RLUSD stablecoin point to a pivotal moment for the company and its ecosystem. This could pave the way for continued growth and adoption.