Ripple has announced the launch of RLUSD, its U.S. dollar-backed stablecoin, set to debut on Dec. 17.
Ripple has announced the launch of RLUSD, its U.S. dollar-backed stablecoin, set to debut on Dec. 17. The stablecoin received final approval from the New York Department of Financial Services (NYDFS) on Dec. 10 and is fully backed by U.S. dollar deposits, government bonds, and cash equivalents. RLUSD will initially be available through platforms such as Uphold, MoonPay, Archax and CoinMENA, with plans to expand to exchanges like Bitso, Bitstamp, Bullish, Mercado Bitcoin, Independent Reserve and Zero Hash shortly after its release. Ripple aims to integrate RLUSD into its payment and cross-border settlement systems and eventually into its digital payment protocol by early 2025.
Ripple will provide monthly independent attestations of RLUSD reserves, ensuring transparency and building trust. The company has obtained a limited-purpose trust company charter from the NYDFS, emphasizing its commitment to regulatory compliance. While RLUSD will initially not be available in the European Union due to the MiCAR regulations, Ripple is exploring ways to bring the stablecoin to that region in the future.
An advisory board has been formed to guide the stablecoin's development. Members include Raghuram Rajan, former Governor of the Reserve Bank of India; Kenneth Montgomery, former COO of the Federal Reserve Bank of Boston; Sheila Bair, former FDIC Chair; and Ripple co-founder Chris Larsen. The board aims to enhance RLUSD's utility while navigating regulatory challenges and improving operational strategies.
David Schwartz, Ripple's CTO, highlighted RLUSD's primary focus on payments and remittances, discouraging speculative trading. He noted potential price fluctuations due to limited initial supply, although the stablecoin is designed to maintain a $1 value. Early trading has already seen premiums paid by speculators, but Ripple is prioritizing its use for tokenized assets, decentralized finance (DeFi), and financial innovation.
Ripple has positioned RLUSD as a competitor to established stablecoins like Tether’s USDT and Circle’s USDC. The company’s payments network, which has processed $70 billion in transactions across 90 markets, is expected to support RLUSD’s adoption. The stablecoin will cater to businesses and institutions by facilitating faster, cost-effective transactions, tokenized asset trading, and broader blockchain-based financial operations.
By focusing on transparency, regulatory compliance, and utility in payments, Ripple aims to challenge existing players in the stablecoin market. RLUSD’s launch marks a significant step in Ripple’s strategy to expand its influence in blockchain-based financial ecosystems and decentralized finance solutions.
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