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Ripple’s Stablecoin Launch Looms: ‘Weeks, Not Months,’ Says CEO

Ripple’s Stablecoin Launch Looms: ‘Weeks, Not Months,’ Says CEO

DailyCoinDailyCoin2024/09/04 17:00
By:DailyCoin
  • Ripple has looked to step in where others have wavered with its RLUSD stablecoin.
  • Garlinghouse has promised RLUSD’s launch much sooner than expected.
  • RLUSD’s launch has set Ripple up for multi-chain dominance.

Ripple Labs CEO Brad Garlinghouse dropped a significant update during Korea Blockchain Week on Wednesday, revealing that the company is on the brink of launching its highly anticipated U.S. dollar-pegged stablecoin. Ripple USD (RLUSD) is expected to debut in a matter of weeks, marking a pivotal moment for the company.

Garlinghouse was clear about the imminent release: “We will certainly launch soon. Weeks, not months.” He further confirmed that RLUSD has already been minted, signaling that the project is advancing rapidly. 

Ripple Eyes Stability with RLUSD Stablecoin

This move follows Ripple’s strategic decision to develop a new stablecoin in response to the destabilization of USD Coin (USDC) , the second-largest stablecoin by market capitalization, which lost its dollar peg in March 2023.

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“We felt like there was an opportunity for a credible player already working with lots of financial institutions to lean into that market,” Garlinghouse noted. 

This sentiment underscores Ripple’s ambition to offer a trustworthy alternative to stablecoins that have faced stability issues. Ripple initially unveiled its stablecoin plans in April, emphasizing that RLUSD would be 100% backed by U.S. dollar deposits, short-term U.S. government Treasuries, and other cash equivalents.

Ripple USD Set for XRP and Ethereum Rollout

The company began testing the token with select enterprise partners in early August and plans to deploy it on Ripple’s XRP Ledger and the Ethereum blockchain. Ripple USD will use Ethereum’s ERC-20 token standard for creating and issuing smart contracts and tokens.

The launch of Ripple USD is set against a backdrop of substantial enhancements to the XRP Ledger . These updates include the integration of Ethereum-compatible smart contracts, which will allow users to build decentralized exchanges, issue new tokens, and access a range of financial services, similar to those available on the Ethereum network.

On the Flipside

  • RLUSD will compete with established stablecoins like USDC and Tether, which have strong market positions.
  • Regulatory uncertainty, especially in the U.S., could create challenges for RLUSD’s launch and adoption.

Why This Matters

The introduction of RLUSD provides users with a potentially more stable and secure option for digital transactions, offering greater confidence in the reliability of stablecoins and enhancing access to decentralized financial services across different blockchain networks.

Curious about the recent news on Ripple’s IPO? Read here to learn more:
Ripple Has “No Interest” in IPO: CEO Reveals Why It’s a No-Go

Millions of XRP on the move! What does it mean for the upcoming Ripple settlement? Find out here:
XRP Holders Move Millions to Exchanges as Ripple Settlement Nears

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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