Ripple is on the brink of launching its much-anticipated RLUSD stablecoin, signaling its commitment to a dual-asset payment solution that integrates both RLUSD and XRP. On the opening day of Ripple’s annual Swell conference, President Monica Long unveiled details about RLUSD’s exchange listings and strategic role within Ripple’s ecosystem.
RLUSD’s Road To Adoption
Ripple confirmed that RLUSD is under regulatory review by the New York Department of Financial Services (NYDFS), with approval expected by the end of the year. The stablecoin will be available on major exchanges, including Bitstamp, Bitso, Independent Reserve, MoonPay, CoinMENA, Bullish, and Uphold, once cleared.
The stablecoin aims to meet the demand for enterprise-grade digital currencies and will play a pivotal role across several sectors, including payments, tokenization, and decentralized finance (DeFi). Ripple emphasized that RLUSD’s reserve backing by U.S. Treasury bonds, cash equivalents, and dollar deposits will ensure stability and transparency.
While there is speculation that RLUSD could overshadow XRP within Ripple’s ecosystem, Monica Long stressed that both assets will work synergistically. Clients will have the flexibility to choose between XRP and RLUSD for cross-border transactions, ensuring efficient and reliable payment solutions.
Ripple CTO David Schwartz added that XRP remains indispensable within RippleNet. He highlighted XRP’s role in paying transaction fees on the XRP Ledger (XRPL)—a function that RLUSD or any other stablecoin cannot perform. Schwartz also noted XRP’s advantage in operating without counterparty risk and jurisdictional limitations, making it essential for certain use cases.
Regulatory Hurdles and Next Steps
RLUSD is currently in beta testing on the XRP Ledger and Ethereum networks, with a total supply of $47.4 million as of mid-October—$34.8 million on XRPL and $12.6 million on Ethereum. Ripple has established an advisory board, featuring key financial experts like Chris Larsen and Sheila Bair, to help navigate the regulatory landscape and steer the stablecoin’s public rollout.
The final hurdle remains regulatory approval from NYDFS, with Ripple eyeing a year-end launch. Once listed, RLUSD will mark a significant step in Ripple’s strategy to expand its payment ecosystem.
Also Read: Ripple’s CEO Reveals – RLUSD To Enhance XRP’s Liquidity By 30% While Tackling SEC Hurdles!
Strengthening Ripple’s Market Position
Ripple’s dual-asset strategy, combining RLUSD’s stability with XRP’s liquidity and unique functions, is designed to bolster cross-border payments and meet growing market demands. With Ripple’s continued focus on transparency and compliance, the RLUSD launch could solidify its position as a leader in digital finance.
The crypto world now waits for regulatory approval, as Ripple positions itself for further growth in 2024, reinforcing both RLUSD and XRP as cornerstones of its payment solutions.
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.
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