|
Getting your Trinity Audio player ready...
|
- Bullish settled $1.5B IPO proceeds in stablecoins, including RLUSD.
- Ripple marks first-ever on-chain IPO settlement with RLUSD.
- RLUSD market cap surged 26% to $666M amid rising adoption.
Bullish, a global crypto exchange with multiple tier-1 licenses, has made history by completing its U.S. IPO with $1.5 billion in proceeds settled in stablecoins. In a first for public markets, part of the settlement included Ripple USD (RLUSD), minted on the XRP Ledger, setting a precedent for on-chain settlement in public offerings.
Stablecoins Replace Traditional Fiat in IPO Settlement
Traditionally, IPO proceeds are paid in fiat currencies such as USD, EUR, or GBP via banks. Bullish broke new ground by settling its IPO proceeds in a mix of USD- and EUR-denominated stablecoins. Investment bank Jefferies acted as the delivery agent, collaborating with issuers in the U.S. and Europe to mint, convert, and deliver the stablecoins.
Most of the proceeds were settled on the Solana blockchain using Circle’s USDC and EURC. Other stablecoins used included PayPal USD (PYUSD), Agora Dollar (AUSD), USD1, and Global Dollar (USDG).
Ripple’s RLUSD Plays Key Role
A portion of the proceeds was settled in RLUSD, Ripple’s stablecoin launched earlier this year. Ripple highlighted the milestone on social media, noting that this is the first time a public listing has utilized stablecoins for settlement on-chain.
“Congrats to @Bullish on a successful IPO! A portion of the IPO proceeds were settled in $RLUSD, minted on the XRP Ledger. This is the first public listing to bring the settlement process on-chain and sets a precedent for how stablecoins can shape future listings,” Ripple posted on X.
Coinbase will provide custody services for RLUSD and other stablecoins involved in the IPO, ensuring secure institutional management.
Growing Stablecoin Adoption and RLUSD Surge
Bullish CFO David Bonanno said the company views stablecoins as one of the most transformative use cases for digital assets, noting that the exchange has long used them for cross-border settlements. Coinbase’s VP of Institutional Products, Greg Tusar, echoed that stablecoins are modernizing the global financial system.
Also Read: XRP vs RLUSD – How Ripple’s Stablecoin Could Actually Boost XRP Demand
Meanwhile, RLUSD adoption is accelerating. Its market cap has surged 26% in the past month to $666.57 million, supported by Ripple’s recent $200 million acquisition of Rail to expand its stablecoin infrastructure.
With Bullish’s IPO marking the first on-chain settlement of a public offering, the role of stablecoins in global capital markets may be entering a transformative new phase.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
