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Ripple has disclosed its partners for the launch of its dollar-backed stablecoin, Ripple USD (RLUSD).
This initiative includes collaborations with various cryptocurrency exchanges, such as Uphold, Bitstamp, and MoonPay, to ensure the stablecoin’s effective distribution.
The company aims for RLUSD to become a leading choice for enterprise-level stablecoins. Ripple’s CEO, Brad Garlinghouse, noted that clients have expressed a need for high-quality stablecoins for diverse financial applications, including payments and decentralized finance. He emphasized that the new payment solution will utilize RLUSD alongside the XRP token to enhance the efficiency of international transactions.
Unique to RLUSD is its issuance under a New York Trust Company Charter, which subjects it to rigorous regulatory scrutiny. Ripple’s commitment to compliance is underscored by the appointment of former FDIC Chair Sheila Bair to its advisory board, who highlighted the essential role of stablecoins in modernizing financial systems and fostering inclusion.
Mainnet testing for RLUSD began on August 9 across the XRP Ledger and Ethereum networks. The stablecoin is designed to be overcollateralized, with each unit backed by U.S. dollar reserves. Ripple also commits to third-party audits of these reserves and intends to publish monthly transparency reports.
This development follows a significant legal ruling on August 7, which imposed a $125 million penalty on Ripple Labs due to an ongoing case with the U.S. Securities and Exchange Commission initiated in 2020.