Ripple to launch its stablecoin RLUSD on December 17
On December 17, Ripple's highly anticipated US dollar-pegged stablecoin will go live. Ripple said in a statement on Monday that "RLUSD will be available on global exchanges starting tomorrow. Each RLUSD token is fully backed by U.S. government bonds, U.S. dollar deposits, and cash equivalents."
To encourage transparency, an independent auditing firm will be entrusted with producing attestations of RLUSD's reserve assets, Ripple added. Every month, the attestations will be released.
RLUSD to be listed on major exchanges
Additionally, Ripple stated that the stablecoin will be "available on MoonPay, CoinMENA, Uphold, and Archax at first, with additional listings on platforms like Bitstamp, Bitso, Bullish, Mercado Bitcoin, Zero Hash, Independent Reserve, and others expected in a few weeks time."
RLUSD will first be accessible through its distribution and exchange partners in the Americas, Asia-Pacific, the UK, and the Middle East. In an interview, Ripple's senior vice president of stablecoin, Jack McDonald, stated. He noted that as Ripple does not yet have the required license under the bloc's MiCAR regulations, the token would not initially be available in the EU. However, the company is "actively exploring" ways to get into the EU market.
Ripple joins stablecoin issuer
Together with other well-funded cryptocurrency companies like Tether, Circle, and Ethena, Ripple is entering a competitive stablecoin issuer market. Tether is currently the undisputed market leader with a supply of more than $140 billion issued. PayPal, a traditional fintech company, also introduced its own stablecoin that is based on the dollar.
In a statement released on Monday, Ripple CEO Brad Garlinghouse stated, "As the U.S. moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD.”
Ripple obtains NYDFS final approval for its stablecoin RLUSD
The New York State Department of Financial Services (NYDFS) granted Ripple the final approval for RLUSD last week.
Garlinghouse wrote on X on Tuesday, "This just in...we have final approval from the New York State Department of Financial Services for RLUSD." "Exchange and partner listings will be live soon." According to Garlinghouse, the stablecoin is ready to be listed on major cryptocurrency exchanges soon and will primarily target large institutional players.
According to the company, Ripple Payments will use RLUSD to process transactions for its corporate customers by the beginning of next year. At first, RLUSD will be accessible on Ethereum and the XRP Ledger. However, Ripple has stated that it "plans to expand to additional blockchains and decentralized finance protocols and apps over time."
Former Central Bankers join the advisory board of Ripple
Additionally, the company announced that two new members have joined its stablecoin advisory board: former Federal Reserve Bank of Boston first vice president and COO Kenneth Montgomery and former Reserve Bank of India governor Raghuram Rajan. These two individuals join board members announced in October, which included Chris Larsen, co-founder and executive chairman and co-founder of Ripple, and former FDIC chair Sheila Bair.
David Schwartz, chief technology officer at Ripple, wrote in an X post about early days supply shortages after the stablecoin is launched before the market becomes stabilized. Schwartz added that it's not an opportunity to get rich.
He went on to say that once supply stabilizes, the price will return to very near $1. If it doesn't, there is a serious problem. Analysts believe that due to early trader demand and limited supply, the RLUSD, which aims to maintain a $1 price, may experience unusual price volatility.
Disclaimer
This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.