Ripple is launching its stablecoin, RLUSD, on the XRP Ledger (XRPL) and Ethereum today. This move represents a significant step in Ripple’s expansion into regulated digital currencies.
In anticipation of the launch, Vet (@Vet_X0), a validator on the XRP Ledger, shared information about the stablecoin’s supply. According to Vet, RLUSD’s pre-launch supply is 13.3 million tokens on the XRPL and 52.9 million tokens on the Ethereum blockchain.
Pre launch supply distribution of RLUSD.
13,300,033 $RLUSD on XRP Ledger.
52,900,129 $RLUSD on Ethereum.
— Vet (@Vet_X0) December 17, 2024
RLUSD stands out for its regulatory approval by the New York Department of Financial Services (NYDFS), a milestone that shows its bank-grade compliance. This distinction positions RLUSD as a reliable and secure option compared to competitors like USDC and USDT.
Key Features of RLUSD
The stablecoin is designed to meet rigorous regulatory and technological standards. Although the NYDFS certification does not extend to XRPL or Ethereum networks, both platforms offer the scalability and security required to host such high-grade financial assets.
Ripple has emphasized that RLUSD will enable seamless cross-border transactions, potentially reducing costs and settlement times in the financial ecosystem.
The launch on the Ethereum network also broadens the appeal of RLUSD. As one prominent crypto figure speculated, the company launched RLUSD on the Ethereum network to allow fast onboarding by exchanges that don’t support XRPL tokens.
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Impact on Ripple and XRP
RLUSD’s launch is part of Ripple’s ongoing efforts to expand the adoption of blockchain technology. The stablecoin’s integration with XRPL, known for its efficiency and low transaction costs, is expected to bolster XRP’s utility within the ecosystem.
The quick onboarding of RLUSD would also introduce more people to the amazing features of Ripple’s stablecoin and network, and increase the adoption of XRP.
Ripple’s executives have highlighted RLUSD’s potential to attract institutional and retail participants to the blockchain space. Ripple CEO Brad Garlinghouse recently stated that USDT, the top stablecoin in the market, won’t have the same market share in two years with RLUSD on the market.
RLUSD’s debut is a pivotal moment for Ripple, showcasing the potential of regulated digital currencies to bridge the gap between blockchain technology and traditional finance.
However, it is best not to get swept up in the excitement of the stablecoin’s launch as Ripple’s Chief Technology Officer (CTO) David Schwartz recently explained some price fluctuations that could occur at launch, which could lead to losses for speculative investors.
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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