Ripple launches RLUSD, a stablecoin backed by U.S. dollar reserves, for global financial use and seamless crypto transactions.
Ripple has announced the launch of RLUSD, its new USD-denominated stablecoin. Starting December 17, 2024, RLUSD will be available on several global exchanges. These include Uphold, Bitso, MoonPay, Archax, and CoinMENA. The company wants to list RLUSD on additional platforms such as Bullish, Bitstamp, Independent Reserve, Mercado Bitcoin, and Zero Hash in the next couple of weeks.
It is important to understand that RLUSD is meant to be a trustworthy and stable digital currency. It is collateralized by U.S. dollar deposits, government securities and cash like instruments. This makes it reliable and easily saleable or liquid. To ensure the public can verify the creation of RLUSD and its backing, Ripple will release third-party attestations for the reserve every month. An independent auditing firm will perform these assessments.
Ripple’s CEO, Brad Garlinghouse, noted the company’s decision to issue RLUSD under the NYDFS limited purpose trust company charter. This charter is cited as one of the highest regulatory standards for digital assets. According to Garlinghouse, as the regulative environment in the United States continues to shape itself, stablecoins such as RLUSD will start to attract more use. They will be useful for the financial system to provide real utility.
Ripple Expands RLUSD Reach Across Key Global Markets
To support RLUSD’s distribution, Ripple has engaged exchanges, market makers and payment providers around the world. These partners will aid in the uptake in the Americas, Asia-Pacific, UK, and Middle East. RLUSD also has the functionality of being utilized by the financial institutions for international transactions, remittance, treasury management and further for decentralized finance.
According to Ripple, RLUSD is an intermediary between fiat money and cryptocurrencies. The stablecoin is also helpful for institutions because it allows for easy on-and-off ramp between digital and traditional assets. RLUSD can also be used as security to trade other tokenized real-world assets such as commodities and securities.
In the future, Ripple Payments intends to deploy RLUSD for cross-border payments for enterprise consumers. Ripple Payments has been able to process payments of over $70 billion. Moreover, it functions in more than 90 payout markets, which account for 90% of the global foreign exchange turnover.
RLUSD will be issued on the XRP ledger and the Ethereum blockchain. As a result, this will provide great versatility for a host of financial uses.
Ripple has also formed an advisory board for RLUSD. It constitutes the former Governor of the Reserve Bank of India, Raghuram Rajan and the former First Vice President of the Federal Reserve Bank of Boston, Kenneth Montgomery. Their guidance will assist in the growth and stability of RLUSD.
Ultimately, RLUSD stands out as the new generation of stablecoins. It merges innovation and formal compliance to rules and regulations. In addition, Ripple’s objective is to revolutionize payments and ensure everyone has access to monetary services.
