Ripple has launched RLUSD, a new USD-backed stablecoin, with international exchange partners.
- The digital asset will be available on multiple platforms, enhancing financial transactions.
- RLUSD aims to facilitate cross-border payments and real-world asset tokenisation.
- The stablecoin is backed by US dollar deposits and is subject to regulatory oversight.
- Ripple collaborates with market makers and forms advisory board to ensure secure and effective implementation.
Ripple, a leader in digital asset infrastructure, has announced the launch of its much-anticipated USD-backed stablecoin, RLUSD. This step has been taken in partnership with several global exchanges to ensure widespread distribution and adoption. RLUSD will be accessible on platforms such as Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish, marking a strategic expansion of Ripple’s offerings in the stablecoin sector.
The motivation behind introducing such a stablecoin stems from growing demands from customers and partners for reliable stablecoin options. According to Brad Garlinghouse, Ripple’s CEO, users are keen to leverage high-quality stablecoins like RLUSD for diverse financial applications, including payments and the tokenisation of real-world assets. Alongside this expansion, market makers B2C2 and Keyrock will support RLUSD’s liquidity, driving its role in market adoption.
Ripple has also instituted an advisory board for RLUSD, consisting of notable figures such as Sheila Bair, former FDIC Chair; David Puth, Vice Chairman of Partners Capital; and Chris Larsen, Ripple’s Co-founder. This advisory board aims to guide the stablecoin through regulatory landscapes and ensure it meets the necessary compliance requirements under the New York Trust Company Charter, offering reassurance regarding oversight.
The identified use cases for RLUSD include cross-border payments, on-ramps and off-ramps for cryptocurrency exchanges, and the tokenisation of real-world assets. Ripple’s integration of RLUSD into its cross-border payment solutions alongside XRP showcases a thoughtful approach to melding traditional finance with blockchain innovations. By launching on both the XRP Ledger and Ethereum blockchains, RLUSD ensures compatibility and interoperability within leading financial ecosystems.
Each RLUSD token carries the backing of USD deposits, US government bonds, and cash equivalents, underscoring the stablecoin’s robust fiduciary design. Ripple commits to monthly, third-party audited attestations of reserve assets, conducted by BPM, an independent accounting firm, further fortifying trust and transparency in RLUSD’s offerings.
The introduction of RLUSD marks Ripple’s strategic entry into the burgeoning stablecoin market, attracting interest across traditional and cryptocurrency financial sectors alike. Cactus Raazi, US CEO of B2C2, highlights the critical importance of stablecoins in constructing resilient digital asset platforms and enhancing payment and asset tokenisation capabilities. Meanwhile, Chris Tyrer from Bullish emphasises the value of regulated stablecoins like RLUSD as essential bridges for institutions trading digital assets.
The launch of RLUSD by Ripple signifies an innovative stride in bridging traditional financial systems with the dynamic world of digital assets.
