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Ripple is making big moves with its new RLUSD stablecoin, teaming up with exchange partners to strengthen its role in digital payments. This stablecoin is expected to bridge the gap between real-world assets and blockchain technology. However, Ripple is currently waiting for approval from the New York Department of Financial Services (NYDFS) to fully launch RLUSD. This article will explore Ripple's plans and what this could mean for the future of stablecoins and tokenization.
Ripple Announces Exchange Partners for RLUSD Stablecoin, Pending NYDFS Approval
At the Ripple Swell 2024 event in Miami, Ripple introduced its exchange and market maker partners for the upcoming RLUSD, a stablecoin tied to the US dollar. Additionally, the company expanded its advisory board by welcoming former FDIC chair Sheila Bair and David Puth, the ex-CEO of Centre, the organization responsible for setting standards for USD Coin (USDC).
Ripple, a company known for its blockchain services connected to the XRP Ledger (XRP), has joined forces with exchanges like Bitstamp, Bitso, Bullish, CoinMENA, Independent Reserve, MoonPay, and Uphold to facilitate the initial distribution of RLUSD. Crypto trading firms Keyrock and B2C2 will handle market making for the new token.
The company is awaiting regulatory approval from the New York Department of Financial Services (NYDFS) for the public release of RLUSD. Despite this, Ripple Labs President Monica Long confirmed in a recent CoinDesk interview that they are "operationally ready" on their end.
How Will Ripple's RLUSD Bridge Finance and Asset Tokenization?
Earlier this year, Ripple revealed its intention to introduce its own stablecoin, aiming to tap into the fast-growing $170 billion stablecoin market. Stablecoins are increasingly essential to the cryptocurrency landscape, serving as a bridge between traditional fiat currencies and blockchain-based assets. Their use is on the rise, particularly for cross-border payments and as a payment method for goods and services, especially in emerging economies.
With RLUSD, Ripple seeks to leverage its strong foothold in payments and play a key role in the tokenization of real-world assets, Ripple Labs President Monica Long shared.
"We've demonstrated the value of stablecoins in facilitating payments," Long explained. "We're also seeing a broader trend towards tokenizing real-world assets. As we expand beyond tokenizing money to financial instruments like securities, bonds, real estate, and other assets, having a stablecoin that's trusted, reliable, and well-managed for smooth transitions on and off the blockchain is essential."
RLUSD will be backed by short-term U.S. Treasuries, cash deposits, and cash equivalents. Currently, it's being tested on the XRP Ledger and Ethereum networks. Ripple plans to provide monthly independent reports on its reserves, which will be verified by the accounting firm BPM, based in San Francisco.