Ripple will launch its U.S. dollar-pegged stablecoin, Ripple USD (RLUSD), on Tuesday, the company announced.
Backed by U.S. dollars, government bonds, and cash equivalents, RLUSD will initially trade on platforms such as:
- MoonPay
- Uphold
- Bitso
- Archax
- CoinMENA
The stablecoin will be available on both the Ethereum and XRP Ledger blockchains.
👉 Discover how RLUSD compares to other stablecoins
XRP’s Recent Surge
The RLUSD launch follows a significant price increase for XRP, Ripple’s native token. Earlier this month, XRP reached a seven-year high of $2.82** and remains up **122% over the last 30 days**, currently trading at **$2.45 (CoinGecko).
Growing Stablecoin Demand
Stablecoins have surged in popularity, particularly for:
- Remittances
- Decentralized Finance (DeFi)
The total stablecoin market cap has grown from $130 billion in January** to **over $200 billion today (DeFiLlama).
Ripple’s Regulatory Compliance
RLUSD will be regulated by the New York Department of Financial Services (NYDFS), which granted Ripple a limited-purpose trust company charter. This ensures compliance with New York banking laws.
For transparency, Ripple will publish monthly third-party attestations from an independent auditor.
👉 Learn how RLUSD ensures transparency
Stablecoin Market Developments
Recent stablecoin milestones include:
- PayPal’s PYUSD launch (2023)
- Robinhood and partners supporting Global Dollar (USDG) (Paxos, 2023)
U.S. Stablecoin Regulation
Currently, stablecoins operate under a patchwork of state laws, though federal regulation has been debated.
Key legislative developments:
- Clarity for Payment Stablecoins Act (2023) – Passed by House Financial Services Committee.
- Lummis-Gillibrand Bill (2022) – Proposed federal framework for digital assets.
While Congress has limited time before the session ends, bipartisan optimism remains for 2024 stablecoin legislation.
FAQ
1. What is RLUSD?
- Ripple’s USD-pegged stablecoin, backed by cash and bonds.
2. Where can I buy RLUSD?
- Initially on MoonPay, Uphold, Bitso, Archax, and CoinMENA.
3. Is RLUSD regulated?
- Yes, by NYDFS, ensuring compliance with banking laws.
4. Why did XRP surge recently?
- Anticipation around RLUSD’s launch and broader crypto market growth.
5. How does RLUSD compare to USDT and USDC?
- RLUSD offers similar stability but with Ripple’s regulatory backing.
6. Will RLUSD expand to more exchanges?
- Likely, as adoption grows post-launch.
👉 Explore RLUSD’s potential in DeFi
Editor's note: Updated with additional regulatory details.
Edited by Andrew Hayward