Eight months after announcing plans to develop its own stablecoin, $XRP issuer Ripple has launched Ripple USD ($RLUSD), a U.S. dollar-backed stablecoin, globally on major exchanges on December 17, 2024.
What’s the Significance: The launch of $RLUSD is set to offer crypto traders another USD-backed stablecoin which is noted to have strong regulatory compliance and easier access to trading and DeFi opportunities.
About the Stablecoin: $RLUSD is launched under the New York State Department of Financial Services (NYDFS) trust company charter.
- Backings: The stablecoin is fully backed by U.S. dollar deposits, government bonds, and cash equivalents; monthly independent reserve attestations will be published for transparency.
- Listing: $RLUSD is available on platforms like Uphold, Bitso, MoonPay, Archax, and CoinMENA, with a promise of more listings to come.
- Blockchain Integration: $RLUSD operates on both the XRP Ledger and Ethereum blockchains.
- $RLUSD Goal: The stablecoin aims to set new standards for stablecoins, focusing on trust, utility, and compliance to drive global adoption and modernize payments.
RLUSD Use Cases, as assured by Ripple:
- Instant settlement for cross-border payments.
- Liquidity access for remittance and treasury operations.
- Integration with DeFi protocols.
- A bridge between fiat and crypto ecosystems.
- Collateralization for tokenized real-world assets.
The Advisory Board: Consequently, Riplle formed an advisory board for $RLUSD to ensure the company’s dedication to excellence and integrity in the world of stablecoins and digital finance. The board members are:
- Chris Larsen, executive chairman of Ripple
- Raghuram Rajan, former governor of the Reserve Bank of India
- Kenneth Montgomery, former vice president and chief operating officer of the Federal Reserve Bank of Boston
- Sheila Bair, former chair of the Federal Deposit Insurance Corporation
- David Puth, former CEO of the CENTRE Consortium
Key Quote:
“Stablecoins could become the backbone of private payments by offering a secure, scalable, and efficient alternative to traditional systems. With its focus on compliance and reliability, RLUSD aims to establish new standards for trust and to play a pivotal role in shaping the future of payments. Joining the Advisory Board provides me an opportunity to counsel RLUSD as it embarks on its journey in the rapidly evolving financial landscape.”
Raghuram Rajan, Former Governor, Reserve Bank of India
What’s next: Ripple Payments will start to use $RLUSD in 2025 to support enterprise customers, benefiting from Ripple’s more than $70 billion in payment volume and 90+ payout markets.
Worth reading: Ripple announced its plan in April 2024 to launch a stablecoin fully backed by U.S. dollar deposits and government securities.
This article is published on BitPinas: Ripple Launches USD-Backed Stablecoin, $RLUSD
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