Thomas Daniels
On Tuesday, December 17, Ripple’s much awaited stablecoin backed by the US dollar, RLUSD, is scheduled to become live. Targeting important markets in the Americas, the United Kingdom, the Middle East, and Asia-Pacific, the stablecoin will be accessible on both the Ethereum blockchain and the XRP Ledger.
After receiving regulatory certification from the New York Department of Financial Services (NYDFS), which is frequently considered the gold standard in financial regulation, the launch represents a significant milestone. Platforms including Uphold, MoonPay, Bitso, Bullish, Mercado, and CoinMENA welcome the permission, which moves RLUSD from its testing stage to a wider rollout.
Ripple’s Stablecoin Strategy Enters a New Era
Noting that RLUSD was introduced in accordance with NYDFS’s limited purpose trust company charter, Ripple CEO Brad Garlinghouse underlined the significance of regulatory compliance. “As the U.S. moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD, which offer real utility and are backed by years of trust and expertise in the industry,” Garlinghouse said.
In order to connect traditional banking with digital asset markets, stablecoins like RLUSD are essential. As legislative frameworks around the world, such as the Wyoming State House and the U.S. Federal Senate, start to match industry demands, institutions are using these assets more and more for affordable cross-border payments.
However, pending permits under the E.U.’s Markets in Crypto-Assets Regulation (MiCA) could cause delays in RLUSD’s availability in Europe, even with the U.S. rollout.
The $200 billion stablecoin market is competitive.
With its debut into the stablecoin space, Ripple paves the way for competition from market titans like Circle’s USDC, which controls sites like Coinbase, and Tether (USDT), which has a $140 billion market valuation. David Schwartz, the CTO of Ripple, warned prospective investors against engaging in speculative activity, pointing to demand-driven volatility and potential supply shortages.
“Please don’t FOMO into a stablecoin,” Schwartz said, warning speculators hoping for quick profits.
Expansion of the Advisory Board and Strategic Leadership
Former Reserve Bank of India Governor Raghuram Rajan and former Boston Federal Reserve COO Kenneth Montgomery have joined Ripple’s advisory board to support the company’s stablecoin strategy. They join notable individuals such as former FDIC chair Sheila Bair and Chris Larsen, co-founder of Ripple.
With the introduction of RLUSD, Ripple hopes to revolutionize the use of stablecoins by providing a safe and regulated link between digital and conventional finance while negotiating a market that is becoming more regulated and competitive.
