Ripple is set to release its (long-awaited) US dollar-pegged stablecoin Ripple USD (RLUSD) on December 4, 2024. This launch has excited many people in the cryptocurrency community about its expected effect on the market. Sources close to the development say Ripple’s RLUSD will be a key constituent of the company’s cross-border payments solution, which aims to facilitate global financial transactions.
However, we have confirmed that Ripple Labs will launch RLUSD on December 4 if the New York Department of Financial Services (NYDFS) approves. In addition, the company has warned against any tokens associated with RLUSD until it formally announces its launch. The fact that preview listings of RLUSD have already appeared on the listings of several cryptocurrency platforms, such as CoinGecko and CoinMarketCap, suggests that the release of the token is close.
RLUSD Launch On XRPL And Ethereum: Expansion Plans And Integration With XRP For Global Payments
RLUSD will be released in the first instance and available on Ripple’s XRPL (XRP Ledger) and the Ethereum blockchain; expansion to other platforms will follow. Stability in its price and investor confidence will come from a fully backed stablecoin backed by US dollar deposits, short-term US government Treasuries, and other cash equivalents.
Once it launches, Ripple intends to integrate Staticcoin with XRP in its cross-border payment services. However, the pairing is seen as a means to expand Ripple’s offerings for global customers further, focusing on institutional players. Ripple’s president, Monica Long, has stressed that RLUSD and XRP are meant to work with RLUSD for stable exchange and XRP to establish market liquidity.
Introducing Ripple USD (RLUSD): A 1:1 USD-backed stablecoin, offering transparency and stability on the XRP Ledger and Ethereum. Coming later this year.
Sign up to receive the latest stablecoin news, content and availability: https://t.co/ifguG77bO6
— Ripple (@Ripple) June 12, 2024
In June 2024, XRP will elevate the integrity of the stablecoin and bolster its utility within Ripple’s global network. The more exchanges accept XRP, the more RLUSD’s peg to the US dollar will remain intact, which is good for users and investors.
CEO Brad Garlinghouse told Fox Business that Ripple may be positioning itself near the ashes of the stablecoin market by targeting institutional clients with RLUSD but that it could serve as a stablecoin market player focused on compliance and large financial institutions. Ripple’s Garlinghouse had expressed confidence that Ripple would successfully meet the needs of institutional users, something rippled previously when USDC, a widely used stablecoin, depegged in the first half of 2024.
🚨 REMINDER:
‚RLUSD‘ WILL BE BENEFICIAL FOR #XRP FOR THE FOLLOWING REASONS:
▪️ ‚RLUSD‘ & XRP WILL BE PAIRED WITH EACH OTHER
▪️ XRP WILL HELP ADD LIQUIDITY TO THE STABLECOIN AS IT‘S AVAILABLE ON ALL EXCHANGES
▪️ THE STABLECOIN IS STABILIZED BY THE PAIRING & PREVENTS DEPEGGING pic.twitter.com/GLSfhjRN8D
— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) November 30, 2024
Unfortunately, we believe there’s an opportunity for another stablecoin player in [the] market to exist that is institution-focused and compliant,” Garlinghouse told Token Relations co-founder Jacquelyn Melinek during a September 2024 conversation.
RLUSD has been on beta test on XRP Ledger and Ethereum mainnet since August 2024. In time, Ripple has said it wants stablecoin to expand to other blockchains and decentralized finance (DeFi) protocols, widening the blockchain’s footprint in cryptocurrency’s wider ecosystem.
Stablecoins like USDC are already being used in some Ripple payment flows. Ripple has minted 20 percent of Circle’s USD Coin, a leading stablecoin. Ripple’s entry into this space works out as a strategic benefit, placing Ripple as a kind of alternative to other issuers of stablecoins after the USDC depegged in 2024.
Ripple has an opportunity to capitalize on market events, said Garlinghouse, which is why RLUSD was designed to be a stable, reliable option for institutions when dealing with the inherent volatility of other stablecoins.
As with RLUSD, Ripple is instead touting itself to institutional clients. Some clients have made the stablecoin available using the self-custodial XRP wallet Xaman since they added it there on 4 December, suggesting early availability to the public. Ripple hasn’t responded to these reports yet.
You can add RLUSD on XAMAN now. pic.twitter.com/1dc7jyAnfy
— Life In The Fast Lane (@LVHomeStore) December 4, 2024
With the launch date fast approaching, the cryptocurrency community is keen to learn how RLUSD will define the stablecoin landscape and how it will integrate with XRP. By combining the two assets, Ripple hopes to achieve a solid solution for cross-border payments while maintaining attraction among institutional players who want stability and compliance in their financial transactions.
Ripple is set to launch RLUSD officially on December 4, 2024, and things are sure to evolve from there, so stay tuned.
