Ripple is preparing to launch a new stablecoin RLUSD blockchain, pegged to the US dollar, on the XRP Ledger (XRPL) and Ethereum. This stablecoin will be fully backed by cash reserves and can be exchanged for US dollars on a one-to-one basis.
Features of RLUSD and its impact on XRP demand
To enhance the reliability of RLUSD, Ripple will fully back the stablecoin with cash reserves. This ensures that RLUSD can be redeemed for US dollars at a one-to-one exchange rate. The stablecoin will be traded on the XRP Ledger and Ethereum blockchain.
Experts suggest that the demand for XRP may increase due to gas fees incurred during RLUSD transactions. A RippleX account manager stated that the XRP Ledger EVM Sidechain will integrate with over 80 blockchains, offering low transaction fees.
Expectations of temporary market fluctuations
David Schwartz pointed out that market imbalances may arise during the launch phase. He noted, 'Some users may pay prices above market value for RLUSD in the initial phase. However, this situation will not last long.' He emphasized that the stablecoin will quickly stabilize through market arbitrage.
Ripple and Axelar Foundation's collaboration is seen as a step towards making XRPL more compatible with different blockchains. This partnership aims to bring liquidity and forex-based use cases to the Ripple ecosystem.
Schwartz emphasized that RLUSD should be used for value storage and transfer, rather than as an investment tool. He remarked, 'As the market stabilizes, RLUSD will stand out as a reliable stablecoin.'
