Coinspeaker Ripple’s RLUSD Stablecoin Goes Live on Global Crypto Exchanges
The long-anticipated stablecoin Ripple USD (RLUSD) is finally here and is now available on global cryptocurrency exchanges. However, Ripple clarified that the availability of the digital asset would vary by jurisdiction due to differing regulatory standards across various markets.
The stablecoin, officially launched on December 17, is designed to maintain a constant value of 1:1 against the US dollar. RLUSD debuted as an ERC-20 compatible token on the Ethereum blockchain and the XRP Ledger, enhancing its accessibility and interoperability.
Ripple’s Stablecoin Experiences Initial Price Drop
Ripple reported on December 16 that RLUSD has secured partnerships across the United States, Asia, the United Kingdom, and the Middle East. Prominent partners include Mercado Bitcoin (a Brazilian crypto exchange), MoonPay, Uphold, Bitso, Archax, and Bitstamp.
Despite its dollar peg, RLUSD experienced a 20% drop in value on decentralized exchanges shortly after launch. However, the digital asset quickly recovered and is now trading at its intended $1 benchmark, according to data from XPMarket.
As a stablecoin, RLUSD is fully backed by reserve assets such as cash and cash equivalents, ensuring its stability even during periods of market volatility. Ripple’s RLUSD is positioned to compete with market leaders like Tether’s USDT, which holds a dominant market share of nearly $150 billion, and Circle’s USDC, currently the eighth-largest digital asset globally.
Ripple said that RLUSD is designed to facilitate cross-border payments for users. The company plans to use the stablecoin for this purpose for its enterprise partners next year.
According to Ripple, the digital asset is an “enterprise-grade stablecoin built for everyone.” The company said it is “held to higher standards—and no reservations about our reserves.”
Not the First Stablecoin Entry
Meanwhile, the launch of RLUSD comes as institutional interest in the stablecoin market continues to rise, with several major players aiming to gain market share. A few months after the company declared its intention to explore the stablecoin market, other crypto firms like BitGo also revealed that they were planning to roll out their own native stablecoin.
The company announced in September that the planned stablecoin offering, USDS, will officially grace the market in 2025. However, unlike traditional stablecoins like USDT, USDC, and RLUSD, BitGo’s offering is being developed as the “first open-participation stablecoin.”
While BitGo is still planning to roll out USDS next year, Ethena Labs launched its third stablecoin yesterday, December 16, which BlackRock’s BUIDL Fund completely backs. Despite its backing, the new stablecoin shares characteristics with USDT, maintaining a 1:1 cash and equivalents reserve ratio. Ethena Labs said that the stablecoin would help users holding its flagship product, USDe, “weather difficult market conditions.”
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Ripple’s RLUSD Stablecoin Goes Live on Global Crypto Exchanges
