1 week ago
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TLDR
- Ripple’s new stablecoin RLUSD launched on major global exchanges including Uphold, Bitso, MoonPay, Archax, and CoinMENA
- Each RLUSD token is backed by USD deposits, US Treasuries, and cash equivalents for stability
- CTO David Schwartz warned about potential early supply shortages and price volatility
- RLUSD is designed for institutional cross-border payments, remittances, and DeFi integration
- XRP price increased 5% to $2.61 following the RLUSD launch announcement
Ripple, a leading blockchain company, has launched its new dollar-backed stablecoin, Ripple USD (RLUSD), on multiple cryptocurrency exchanges worldwide. The December 17 release marks Ripple’s entry into the stablecoin market, with the digital currency now available on both the XRP Ledger and Ethereum blockchain.
The initial launch includes five major cryptocurrency platforms: Uphold, Bitso, MoonPay, Archax, and CoinMENA. According to Ripple’s Monday press release, several additional exchanges are scheduled to list RLUSD in the coming weeks, including Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash.
To ensure stability and reliability, each RLUSD token is backed by a combination of US dollar deposits, US Treasury securities, and cash equivalents. This backing structure aims to maintain the stablecoin’s value at a constant one-to-one ratio with the US dollar.
Ripple USD (RLUSD) is now live on global exchanges.
An enterprise-grade stablecoin built for everyone, $RLUSD combines fiat stability with blockchain efficiency:
➡️ Instant global payments, 24/7
➡️ Seamless on/off ramps
➡️ Access value in real-world assets.… pic.twitter.com/lJ43GdoDGR
— Ripple (@Ripple) December 17, 2024
David Schwartz, Ripple’s Chief Technology Officer, addressed potential concerns about the stablecoin’s early days of trading. On December 14, he warned users about possible supply shortages that could lead to temporary price fluctuations. Schwartz emphasized that any deviations from the intended $1 peg would be short-lived, as market forces and arbitrage trading would help stabilize the price.
The launch of RLUSD represents a strategic expansion of Ripple’s payment infrastructure. The stablecoin is specifically designed for financial institutions, offering solutions for cross-border payments, remittance services, and treasury operations.
The dual-blockchain approach, launching on both XRP Ledger and Ethereum, provides broader accessibility and compatibility with existing cryptocurrency infrastructure. This design choice allows RLUSD to interact with various decentralized finance protocols and applications across multiple networks.
As RLUSD goes live, there may be supply shortages in the very early days before the market stabilizes. There actually is someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD. Tools will show you the highest price anyone is willing to pay, even if it's just for a… https://t.co/LOx4rGiiiJ
— David "JoelKatz" Schwartz (@JoelKatz) December 15, 2024
Major business media outlets, including Fox Business and NYSE TV, have covered the RLUSD launch, highlighting its potential impact on digital payment systems. The media attention reflects growing interest in stablecoin technologies among traditional financial institutions.
Following the launch announcement, the price of XRP, Ripple’s native cryptocurrency, increased by 5% to reach $2.61. This price movement strengthened XRP’s position as the third-largest cryptocurrency by market value.
Ripple Payments, the company’s enterprise payment service, plans to integrate RLUSD into its operations starting in early 2024. This integration will enable business clients to process international payments using the new stablecoin.
The stablecoin also serves as a bridge between traditional fiat currencies and digital assets, simplifying the process for users entering or exiting cryptocurrency markets. This functionality addresses a common challenge in cryptocurrency adoption by providing a stable conversion point between traditional and digital currencies.
RLUSD’s infrastructure supports the trading of tokenized real-world assets, including commodities, securities, and treasury instruments on blockchain networks. This feature expands the potential use cases beyond simple value transfer to more complex financial applications.
The rollout strategy includes a phased approach to exchange listings, with the initial five platforms serving as launch partners before expanding to additional trading venues. This measured approach aims to ensure stable liquidity and proper market formation.
Market makers and liquidity providers are being integrated into the RLUSD ecosystem to support smooth trading operations and maintain price stability. These participants play a crucial role in managing supply and demand dynamics.
The technical implementation includes built-in compliance features and security measures designed to meet regulatory requirements across different jurisdictions. These features reflect Ripple’s focus on regulatory compliance in its product development.
The launch timing coincides with increasing demand for digital payment solutions in global markets, particularly for cross-border transactions and institutional payment processing.
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