Ripple has announced that its new stablecoin, Ripple-USD (RLUSD), is ready for deployment, but waiting for regulatory approval.
The company’s president, Monica Long, has shared insights into the stablecoin’s role in Ripple’s operations, emphasizing its synergy with XRP and its potential impact on users and developers within the ecosystem.
According to Long, RLUSD is designed to enhance Ripple’s payment system by offering an alternative to its native token, XRP. While the token continues to play a crucial role in facilitating low-liquidity currency transfers quickly and affordably, RLUSD provides stability by mitigating the risks associated with cryptocurrency market volatility.
The stablecoin will allow users to hold and trade tokenized US dollars directly on the XRP Ledger. This addition offers clients greater flexibility and serves those who prioritize consistency over market fluctuations.
Furthermore, Long explained that RLUSD would attract developers to the XRPL by enabling them to build decentralized finance (DeFi) applications with greater utility and scalability.
Ripple has processed over $70 billion in blockchain transactions, demonstrating its prominence in the digital payment sector.
While RLUSD is set to broaden Ripple’s ecosystem, Long emphasized that XRP would remain integral to the XRPL’s operations, particularly for cross-border transactions involving illiquid currencies. The two assets are expected to work together to meet the diverse needs of Ripple’s clients.
Long stressed the importance of regulatory compliance and financial stability in launching a successful stablecoin. Ripple has taken significant steps to meet these standards, including acquiring Standard Custody and holding a license issued by New York’s Department of Financial Services (NYDFS).
This license ensures that RLUSD meets NYDFS’s strict requirements for stablecoin issuance, including being fully backed by reserves.
While RLUSD is operationally ready, Ripple is waiting for regulatory clearance before launching the stablecoin. This measured approach highlights the company’s commitment to transparency and adherence to regulatory guidelines.
Ripple aims to position the new token as a leader in the growing stablecoin sector projected to be worth $3 trillion within the next five years. Long noted that demand for stablecoins is strong among Ripple’s clients in regions such as Asia Pacific, Europe, and Australia.
The integration of this asset is in line with Ripple’s broader mission to expand its suite of financial products while maintaining XRP’s vital role in its operations. By offering a stablecoin alongside its native token, Ripple seeks to cater to a wider range of users and applications within the blockchain space.
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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