Coinspeaker Ripple’s RLUSD Stablecoin to Go Live Today, Here’s What Users Must Know
The much-awaited Ripple‘s stablecoin RLUSD is likely to go live today, December 4, after securing approval from the New York Department of Financial Services. The preliminary listing for RLUSD already appears on some of the top crypto data platforms.
However, blockchain firm Ripple has warned against some fake tokens claiming to be RLUSD, unless there’s an official launch announcement.
Ripple first introduced the RLUSD stablecoin, earlier in June, as a 1:1 USD-pegged stablecoin backed 100% using the USD deposit, short-term US Treasury, and other cash equivalents. In August, Ripple pushed the RLUSD into the beta-testing phase on its decentralized public blockchain platform, along with the Ethereum mainnet and XRP Ledger (XRPL).
The company is also willing to expand its RLUSD stablecoin to other blockchain networks and DeFi platforms over time. Amid the excitement surrounding the RLUSD launch, Ripple’s native XRP rallied by 440% over the past month, entering the top-three crypto list.
Following the launch of RLUSD, Ripple is planning to use the stablecoin along with XRP for cross-border payments. Ripple president Monica Long stated that RLUSD’s design is “complementary and additive” to XRP. Sources indicate that Ripple views RLUSD as “beneficial” for XRP while pairing both of them together.
Moreover, XRP will further enhance liquidity for RLUSD through its widespread presence on exchanges. Also, Ripple will ensure RLUSD’s stabilization by the XRP pairing to prevent any sort of de-pegging.
Ripple’s RLUSD Stablecoin to Target Institutional Players
By launching RLUSD, Ripple is eyeing a slice into the rapidly growing stablecoin market, which presents a multi-trillion market opportunity by 2030. Reports suggest that it could give tough competition to dominant players like Tether’s USDT and Circle’s USDC.
However, Ripple CEO Brad Garlinghouse recently stated that the RLUSD stablecoin will majorly target institutional players. During an early conversation back in September, Garlinghouse said:
“We think there’s an opportunity for another player in the stablecoin market to exist that focuses on institutions, focuses on compliance. “Obviously, there was a big event last spring in the US, 18 months ago, where USDC depegged, and we felt like there was an opportunity for a credible player that’s already working with lots of financial institutions to lean into that market.”
Last week, Ripple reportedly conducted a major token burning of about 47 million RLUSD stablecoins. The Ripple Stablecoin Tracker account announced that 46,676,120 RLUSD tokens were burned in a single day, significantly reducing the supply by removing the majority of these minted tokens from circulation.
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Ripple’s RLUSD Stablecoin to Go Live Today, Here’s What Users Must Know
