Set to be a pivotal addition to Ripple’s ecosystem, the anticipated launch of Ripple USD (RLUSD), a stablecoin pegged to the U.S. dollar, was expected to happen this year. The XRP Ledger (XRPL) and Ethereum were initially selected as the primary platforms for RLUSD’s release. However, recent developments indicate potential changes to this plan.
RLUSD is expected to launch on Ethereum this year or potentially on XRPL, though with limitations. Specifically, it could debut on XRPL without full integration into the Automated Market Maker (AMM), restricting its initial use to the decentralized exchange (DEX) order book.
It is limited by the clawback feature that still does not allow RLUSD to be used in XRPL’s AMM. Some changes are being worked on to fix this quirk; one is called XLS-73, which focuses on improving the AMM’s interaction with frozen assets. Another such amendment, XLS-77, aims to set up a stricter freeze on trust lines and thus block the movement of RLUSD by blocklisted accounts.
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XRPL’s Decentralization and Unpredictable Timelines
As the XRPL operates as a decentralized network, the timing of these amendments taking effect remains unclear. Ripple CTO David Schwartz explained that XLS-77 introduces fewer restrictions than some expected. The amendment goes beyond freezing assets in accounts while keeping them in unfrozen accounts; it also includes some rules that can impact payments.
However, these technical enhancements only suggest that the initial RLUSD coin launch may not be comprehensive enough for users to respond satisfactorily. Being a part of Ripple’s future, the stablecoin is undoubtedly functional, yet its release might be followed by limitations in terms of operation, which users might have to wait out.
Conclusion
Though RLUSD represents a significant step forward for Ripple, its launch faces challenges, particularly on the XRPL. Until the necessary amendments are adopted, users should be prepared for limited functionality. The community must wait for further updates to see when RLUSD will be fully operational across all platforms.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.