Recent comments from Ripple CEO Brad Garlinghouse shared on X by Coindesk suggest the company might launch the highly anticipated Ripple USD (RLUSD) stablecoin sooner than many expect.
Speaking at Korea Blockchain Week, Garlinghouse revealed that the stablecoin launch is imminent, with a timeline of “weeks, not months” for its release.
This development marks a significant milestone for Ripple as it ventures into the stablecoin market, which has become a crucial component of the broader cryptocurrency ecosystem.
The RLUSD Stablecoin
Ripple officially announced its plans to launch RLUSD in early 2024, emphasizing its benefits and the stablecoin’s 100% backing by U.S. dollar assets.
The company has since been testing the stablecoin in collaboration with enterprise partners, beginning in early August. These tests are designed to ensure that RLUSD operates seamlessly and meets the needs of the institutions that will use it.
Ripple’s RLUSD stablecoin, will be fully backed by U.S. dollar assets, including deposits, short-term U.S. government Treasuries, and other cash equivalents. The stablecoin will operate on the XRP Ledger (XRPL) and the Ethereum blockchain, leveraging Ethereum’s ERC-20 token standard.
The integration of RLUSD into the XRP Ledger and Ethereum blockchain highlights Ripple’s commitment to enhancing its ecosystem. The XRP Ledger, which has focused on facilitating cross-border payments, will benefit from Ethereum-compatible smart contracts.
This upgrade will allow users to build on-chain exchanges, issue tokens, and access various financial services similar to those available on Ethereum.
Work is also ongoing for an EVM Sidechain that would further boost the interoperability of XRPL. By utilizing these two major blockchain platforms, Ripple aims to ensure broad compatibility and accessibility for users and institutions.
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The Importance of RLUSD
The launch of RLUSD comes when the stablecoin market is increasingly becoming a focal point for regulators and market participants.
Stablecoins, designed to maintain a stable value by being pegged to a reserve asset such as the U.S. dollar, have become an important bridge between traditional finance and the crypto world.
By offering a stablecoin backed by U.S. dollar assets, Ripple aims to provide a reliable option for users looking for stability in the often volatile cryptocurrency market.
RLUSD’s 100% USD backing is also important, as recent rumors suggest Tether (USDT) has been issuing stablecoins without USD backing, creating a speculative bubble and artificially inflating BTC and ETH prices.
When this bubble bursts, it could benefit major altcoins like XRP, and RLUSD could provide a haven for investors looking for a stablecoin alternative. Based on Garlinghouse’s announcement, the community is just a few weeks from the launch of this exciting stablecoin.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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