Ripple is gearing up to launch its own stablecoin, RLUSD, which will be backed by a 1:1 reserve of USD and other cash equivalents. This move was announced by Ripple CEO Brad Garlinghouse during the XRP Ledger Apex meeting, where he affectionately referred to it as “Real USD… Ripple USD.”
The introduction of RLUSD signifies Ripple’s strategic entry into the rapidly growing $3 trillion stablecoin market. The CoinMarketCap data indicates that XRP’s price is currently around $0.4870, showing a 1.10% increase from the previous day but also reflecting a bearish trend of 7.08% over the past week.
Ripple recently filed a trademark for RLUSD on May 7, 2024, signaling its focus on electronic financial services, particularly in monetary transactions involving virtual currencies. Monthly attestations will ensure the transparency and reliability of RLUSD, which will be backed by US dollar deposits, short-term US government treasuries, and other currency equivalents.
Compliance is a top priority for Ripple, as evidenced by its Major Payment Institution License from the Monetary Authority of Singapore and New York BitLicense. RLUSD will not only be interoperable with the Ethereum blockchain and the XRP Ledger but will also seamlessly integrate with Ripple Payments, the company’s revamped On-Demand Liquidity (ODL) solution, enabling broad usability and cross-chain interoperability.
While some in the crypto community have expressed differing opinions on the RLUSD ticker, Ripple remains confident in its importance within its ecosystem. Despite suggestions for alternative names like USDX or USDR, RLUSD was chosen due to the availability of the other options by different organizations. Ripple believes RLUSD will play a significant role in its future endeavors.