Ethereum

Maker

2024

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
Set to be a major development in Ripple's ecosystem, the launch of&nbsp;<a href="https://u.today/ripple-mints-99-of-rlusd-tokens-in-24-hours" rel="noopener noreferrer nofollow">Ripple USD (RLUSD)</a>, pegged to the U.S. dollar, was widely expected this year. Both XRP Ledger (XRPL) and Ethereum were originally planned as its launching platforms.&nbsp;
However, recent&nbsp;<a href="https://x.com/Vet_X0/status/1840448481002934632" rel="noopener noreferrer nofollow">news</a> suggests potential changes, as RLUSD can only launch on Ethereum this year or, alternatively, on XRPL as well, but without initial functionality in the Automated Market Maker (AMM), restricted instead to the DEX orderbook.
A key reason for this limitation comes from the clawback feature, which block the stablecoin from being utilized in XRPL’s AMM. There are amendments in development that could remedy this situation, notably XLS-73, which aims to improve how the AMM interacts with frozen assets, and XLS-77, designed to implement a more stringent freeze for trustlines, preventing the transfer of RLUSD by blacklisted accounts.&nbsp;
With XRPL being a decentralized network, when these amendments will take effect remains unpredictable, especially with community fatigue being observed.
<h2 dir="ltr" id="david-schwartz-weighs-in">David Schwartz weighs in</h2>
<a href="https://u.today/why-not-just-burn-xrp-ripple-cto-doubts-new-xrpl-initiative" rel="noopener noreferrer nofollow">Ripple CTO</a> David Schwartz provided his perspective, explaining that XLS-77 introduces less of a deep freeze than some might expect.&nbsp;
In cases where XLS-77 applies, instead of assets going into frozen accounts, they remain in unfrozen accounts with added restrictions, impacting payments that would have otherwise gone through.
<blockquote>
 FWIW, I'm not sure I like the description of XLS-77 as a "deeper" freeze. If anything, it's less deep. Unless I'm missing something, in any case where XLS-77 makes a difference, an asset that would have been frozen is, instead, not frozen.— David "JoelKatz" Schwartz (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1840559504695689340?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 30, 2024</a>
</blockquote>
Yet, despite technical progress, the RLUSD launch may not meet all expectations right away. A stablecoin of high quality is, without question, essential for Ripple’s future, but the initial release may lack complete functionality, requiring some patience from users.
Further intensifying the situation, the&nbsp;<a href="https://u.today/xrp-scores-highest-weekly-close-of-2024-will-sec-spoil-this-rally" rel="noopener noreferrer nofollow">XRP</a> community voiced strong objections over RLUSD’s potential limitations on XRPL, especially since it is expected to operate fully on&nbsp;<a href="https://u.today/70000-has-never-been-closer-for-bitcoin-btc-will-shiba-inu-shib-finally-reach-000002-ethereum-eth" rel="noopener noreferrer nofollow">Ethereum</a>. This has not sat well with some, who hold deep-seated frustrations toward Ethereum and its creator, Vitalik Buterin.

XRP Community Outraged as Ripple USD (RLUSD) Faces Freeze on XRPL

Table of Contents

U_Today

Other articles published on Sep 30, 2024

Australia’s ANZ joins Project Guardian on tokenized assets

4 Unbeatable Altcoin Leaders For the Crypto Bull Run

Shiba Inu's L2 Shibarium Breaks Crucial Milestone

Coinpedia Fintech News

Spot Bitcoin ETFs Attracting Billions In Investments To These 3 Affordable Altcoins

$586,500 Bitcoin Top Target Comes Into Focus as Silver-Tongued Analyst Breaks Down the Bullish Po...

Join our free newsletter for daily crypto updates!