Ripple has announced the global launch of its USD-backed stablecoin, RLUSD, slated for December 17, 2024. The stablecoin is positioned to set a new standard for stability, compliance, and utility within the financial ecosystem.

Once it goes live, it will be available on Uphold, MoonPay, CoinMENA, Bitso, and Archax. Ripple aims to expand its reach to additional exchanges soon.

RLUSD’s Notable Credentials

RLUSD represents a milestone in the stablecoin space. It is backed by U.S. dollar deposits, U.S. government bonds, and cash equivalents. Ripple ensures transparency by committing to monthly, third-party audits of its reserve assets.

The stablecoin’s compliance credentials are bolstered by its launch under the New York Department of Financial Services (NYDFS) limited-purpose trust company charter. NYDFS approval is a big deal for the stablecoin, and Ripple CEO Brad Garlinghouse described it as the “premier regulatory standard worldwide.”

According to Ripple’s official press release, Garlinghouse emphasized the strategic importance of regulatory clarity. The CEO stated, “As the U.S. moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD, which offer real utility and are backed by years of trust and expertise in the industry.”

Expanding Utility and Global Reach

Ripple has positioned RLUSD as a multi-faceted tool for financial institutions. The stablecoin facilitates instant cross-border payment settlements, offers liquidity for remittance and treasury operations, and integrates seamlessly with decentralized finance (DeFi) protocols.

It also bridges the gap between traditional fiat currencies and the crypto ecosystem, streamlining both on-ramping and off-ramping processes. Additionally, RLUSD can be used for collateralizing tokenized real-world assets like commodities and securities.

Available on both the XRP Ledger and Ethereum blockchain, RLUSD provides flexibility and scalability to address diverse financial needs. Ripple Payments, a key service in Ripple’s portfolio, will incorporate RLUSD into its global payment solutions early next year.

Ripple revealed in its press release that this addition could enhance Ripple Payments’ $70 billion annual transaction volume and extend its reach across 90+ payout markets.

Expert Oversight of RLUSD

Ripple has assembled an exceptional advisory board to guide RLUSD’s growth. Joining the board are Raghuram Rajan, former Governor of the Reserve Bank of India, and Kenneth Montgomery, former First Vice President and COO of the Federal Reserve Bank of Boston.

These seasoned financial leaders join existing advisors such as Sheila Bair, former FDIC Chair, and Chris Larsen, Ripple’s co-founder.

XRP Rising Again

Following the announcement, XRP experienced a notable surge. The asset is now trading at $2.56, up 5.7% from yesterday. This surge has pushed it above crucial resistance points and the excitement could help the asset climb further, potentially breaching its 2024 peak of $2.86.

⚠️Disclaimer

This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.

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