Ripple stated that its highly anticipated USD stablecoin RLUSD will officially be available for use on December 17 after receiving regulatory approval in the United States.
Ripple announced in a press release that RLUSD will first be listed on several exchanges including Uphold, MoonPay, Archax, and CoinMENA, with additional listings to follow in the coming weeks on platforms such as Bitso, Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash.
Ripple also announced that two new members have joined the RLUSD advisory committee, including former Reserve Bank of India Governor Raghuram Rajan and former Vice President and COO of the Federal Reserve Bank of Boston Kenneth Montgomery.
The two will join the advisory members who joined in October, such as former FDIC Chair Sheila Bair and Ripple co-founder and Executive Chairman Chris Larsen, to provide professional advice for the development of RLUSD.
Regulation gives the green light! Is RLUSD set to challenge the dominance of the stablecoin market?
Before the launch of RLUSD, Ripple CEO Brad Garlinghouse announced last week that RLUSD has received final approval from the New York State Department of Financial Services (NYDFS), paving the way for RLUSD to move from the testing phase to the market. RLUSD will be fully backed by USD deposits, US government bonds, and cash equivalents, with the goal of maintaining its price at 1 USD.
Ripple aims to establish a foothold in the rapidly growing stablecoin market through RLUSD. Currently, the stablecoin market is dominated by Tether's USDT and Circle's USDC, with market capitalizations of 140 billion USD and 40 billion USD, respectively.
Stablecoins are a key part of the infrastructure linking the digital asset market with traditional finance, not only serving as an important source of liquidity for digital asset trading but also as a core bridge for cross-border payments and blockchain transactions.
As financial giants such as PayPal, Visa, and Societe Generale enter the stablecoin space, global regulators are gradually introducing clear regulations, bringing regulatory clarity to this emerging market.
Ripple CEO Brad Garlinghouse stated, "Initially, Ripple carefully chose to launch our stablecoin based on the NYDFS limited purpose trust company charter, which is widely regarded as the leading regulatory standard in the world."
As the United States moves towards a clearer regulatory framework, we expect to see wider adoption of the RLUSD stablecoin. Stablecoins provide real utility, gaining trust from the industry and professional technical support over the years.
Currently not open in Europe
Ripple's Senior Vice President of Stablecoins Jack McDonald stated that RLUSD will first launch in the Americas, Asia-Pacific, the UK, and the Middle East through distribution and exchange partnerships. He previously served as CEO of Standard Custody & Trust, which was acquired by Ripple earlier this year and holds a New York trust license.
However, RLUSD will initially not be usable in the EU, as Ripple has not yet obtained a license under the MiCAR (Markets in Crypto-Assets Regulation) regulatory framework in the EU, but the company will actively explore various ways to enter that market.
RLUSD aims to maintain a price of 1 USD, but due to early trader demand and limited supply, unusual price fluctuations may be observed.
Ripple's Chief Technology Officer David Schwartz stated that an initial supply shortage may be observed before the market stabilizes. He warned investors against blindly speculating on stablecoins due to 'FOMO', saying, 'This is not a wealth-building opportunity.'
"Ripple officially launches the USD stablecoin RLUSD! The committee is joined by 'former financial officials' experts." This article was first published on (Block Guest).
