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The cross-border payment crypto company Ripple is approaching the much-anticipated launch of the stablecoin RLUSD, expected by the end of the year.
After presenting in recent months the new innovative solution with a value pegged to the US dollar, the first exchange partners are now revealed.
RLUSD should serve as a bridge off/on ramp FIAT and as a trading channel for RWA investments, in such a way as to revolutionize the stablecoin sector.
The first mintings have already started on the Ethereum and XRP Ledger chains, now we are just waiting for the official launch of Ripple to the general public.
Let’s see all the details below.
Summary
Ripple and the new stablecoin RLUSD
In April, Ripple announced for the first time the intention to launch its own stablecoin, whose value would mirror that of the US dollar.
The initial idea of the company was to compete with the market stablecoin leaders like USDT and USDC, offering an innovative cryptographic solution.
Now, months later, the new RLUSD currency seems closer than it appears.
Ripple has already conducted the first tests on the Ethereum and XRP Ledger blockchains, in preparation for the official distribution on the mainnet.
The stablecoin, according to what was reported by the CTO David Schwartz, should debut in the bull crypto market by the end of 2024.
Introducing Ripple USD (RLUSD): A 1:1 USD-backed stablecoin, offering transparency and stability on the XRP Ledger and Ethereum. Coming later this year.
— Ripple (@Ripple) June 12, 2024
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RLUSD will be guaranteed by deposits in USD and US Treasury securities, offering financial transparency through the exceptional oversight of a third-party company.
The Ripple solution was designed as an entry point to seize new hybrid opportunities between the DeFi and CeFi worlds.
Potentially, the resource could revolutionize the sector by bringing the capitalization of cryptographic stablecoins to 2.8 trillion dollars in capitalization by 2028.
According to Etherscan data, RLUSD currently has a supply already minted of 26.5 million units, but it is not tradable on any crypto exchange.
The holders are only 7, with all the addresses connected to the Ripple issuance structure.
A few hours ago, 6 million RLUSD were released by Ripple, suggesting a possible debut of the stablecoin in the coming weeks.
It will be interesting to see with how much supply the coin will start to be distributed among the public.
Ripple prepares for the big launch of RLUSD: exchange partners announced
As mentioned, Ripple is likely completing the final paperwork before positioning RLUSD among the major stablecoins in the crypto market.
The blockchain company, a well-known provider of digital asset infrastructure for financial institutions, today announced its exchange partners and clients.
By doing so, thanks to these strategic partnerships, RLUSD will be available globally for institutions and users on major exchanges and global platforms.
These include brokers such as Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA and Bullish.
Brad Garlinghouse, CEO di Ripple, recently stated at a press conference that the stablecoin is ready to take on the connotation of the gold standard in the corporate field.
RLUSD will unlock in this sense a wide range of use cases at the financial level, such as real payments and decentralized finance. Great attention will be given to the front of cross-border payments, being the main focus of Ripple.
In this sense, the integration of the new stablecoin with the already present XRP will help make international transactions faster, more reliable, and more economical.
Ripple has also revealed that the market makers B2C2 and Keyrock will support the liquidity of RLUSD in this initial phase.
#Ripple #XRPCommunity 👇🏼
— Subjective Views (@subjectiveviews) October 15, 2024
Any day now, @Ripple will launch their #RLUSD stablecoin that will start to soak up the $2.3 trillion M0 circulating around the world.⏳️
👤Speaker: Yam-ki Chan, @circle Asia Pacific pic.twitter.com/l68ngWLD4c
The market is experiencing a period of uncertainty, with both bull and bear trends influencing investor decisions.
By virtue of the imminent launch, Ripple has also assembled an advisory committee to guide the responsible introduction of RLUSD to the market.
Inside it, we find the former president of the Federal Deposit Insurance Corporation (FDIC) Sheila Bair, as well as the former CEO of the CENTRE consortium David Puth.
The crypto will be one of the few currencies issued under a New York Trust Company Charter, with strict oversight in support.
Regarding the news, Sheila Bair herself spoke to highlight the responsible component of RIpple in this last phase before the launch:
“As the digital resources industry grows, responsible innovation will be crucial for their adoption, prioritizing both consumer protection and financial stability.”
The disruptive potential of Ripple’s stablecoin: focus on RWA and FIAT on/off ramp channels
Not everyone is aware that Ripple’s RLUSD stablecoin will have additional features compared to the classic payment currency function.
The currency, in fact, will combine the stability of traditional legal currencies with the efficiency of blockchain technology, revolutionizing financial use cases.
Denominated in USD and developed thanks to the factors of trust, liquidity and compliance, RLUSD will leverage the breadth of the Tipple network, which includes over 90 markets worldwide.
It will be available 24 hours a day, 7 days a week, without the service interruptions typical of traditional centralized banks.
The company stated it wants to focus on exploring the RWA and on/off ramp FIAT sectors, still not well connected with the blockchain world.
Specifically, the stablecoin will need to serve as a stable bridge and reliable link between traditional fiat currencies and the crypto ecosystem.
Users must indeed be able to rely on a stable currency for blockchain interactions, without worrying about infrastructural security and price volatility
On the other hand, RLUSD by Ripple aims to provide liquidity and settlement for the trading of RWA securities such as commodities, securities, and treasuries on the chain. Given the potential of this market niche increasingly considered by large financial institutions (like BlackRock), it is clear that Ripple wants to ensure its presence.
Potentially the currency could enter with merit into the ranking of the top 10 most capitalized crypto stablecoins in the world.
Some metrics of the stablecoin market
The entry of Ripple into the stablecoin sector with its own invention RLUSD lays the foundation for a phase of expansion of the entire market.
Overall, all stable cryptocurrencies (pegged to a FIAT currency) are currently worth 180 billion dollars.
With Ripple, it is estimated that the market could multiply its value given the economic potential that is on the horizon.
According to data from The Block, over 99% of the entire capitalization is poured into USD backed stablecoins, while a minority share is allocated to those EURO backed.
The top 5 coins USDT; USDC, DAI, FDUSD, and USDe alone represent the majority of the market, with many other small stablecoins in the background.
In addition to those mentioned, no others exceed a capitalization of 1 billion dollars, highlighting a highly polarized market scenario.
Not even the recent debut of PayPal’s stablecoin (PayPal)(PYUSD) has managed to make the wealth of the market more distributed, despite the positive numbers recorded so far.
Probably RLUSD by RIpple will manage in the first months to achieve a prestigious position among the major stablecoin crypto.
The payment company indeed boasts excellent liquidity reserves with which to drive the expansion of the currency, in addition to a rich network of partners.
We can expect to see the name of Ripple at the top of the stablecoin industry in the coming months.