Ripple Labs has announced the launch of its much-anticipated stablecoin, RLUSD, for tomorrow, December 17, 2024. This comes following regulatory approval from the New York State Department of Financial Services (NYDFS) on December 10.
Following the launch, Ripple will now compete in the rapidly growing stablecoin market with a valuation of over $200 billion. According to a press release by the company, RLUSD will launch with “unmatched utility, experience, and compliance” in the global crypto market.
Moreover, Ripple noted that the coin would be initially accessible on several centralized exchanges like Uphold, CoinMena, Bitso, Moonpay, and Archax. Other exchanges include Bitstamp, Mercado Bitcoin, Bullish, Zero Hash, and Independent Reserve.
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Ripple noted that other platforms would be announced soon. At the time of launch, RLUSD is only available on the XRP Ledger and Ethereum blockchain, with integration on other networks expected in the coming weeks. RLUSD is designed to ensure stability, reliability, and liquidity for the crypto market, hence, it is fully backed by U.S. dollar deposits, U.S. government bonds, and cash equivalents.
Ripple to Facilitate Global Payment With RLUSD From Next Year
Meanwhile, Ripple disclosed that it will begin utilizing RLUSD to complete global payments on behalf of its clients from next year. Over the years, Ripple has processed over $70 billion in payments, with its services available almost worldwide. Additionally, Ripple operates in over 90 markets, representing more than 90% of the daily global forex market.
The launch is one of the most anticipated events in the crypto industry this year. Ripple first disclosed its plan to dabble into the stablecoin market in April, a sector that is fully dominated by key players like Tether USDT, and Circle’s USDC. With the stablecoin market projected to reach $1 trillion in the coming years, Ripple has strategically positioned itself to take up a healthy share of the market.
To ensure transparency, Ripple emphasized that it will publish a third-party assessment of its RLUSD stablecoin reserve monthly. This move is important as it develops trust in the project, especially at a time when several allegations have been made about USDT’s market manipulation strategy.
Read our comprehensive article on “What is RLUSD” to find out all the technicalities you need to know about the stablecoin.
Ripple Appoints New RLUSD Board Members
To ensure that RLUSD maintains the highest industry standards, Ripple announced that it has appointed new members to the RLUSD advisory board. According to the announcement, Raghuram Rajan, former Governor of the Reserve Bank of India, and former First Vice President and COO of the Federal Reserve Bank of Boston, Kenneth Montgomery, have joined the team.
These members would help to propel RLUSD’s growth by offering guidance on industry regulations, and also the financial, and operational part of RLUSD. Speaking on the development, Rajan expressed his excitement to join the RLUSD team while emphasizing the rapid growth of the stablecoin industry.
“Stablecoins could become the backbone of private payments by offering a secure, scalable, and efficient alternative to traditional systems” … “Joining the Advisory Board provides me an opportunity to counsel RLUSD as it embarks on its journey in the rapidly evolving financial landscape,” he said.
Following the announcement, XRP surged over 8%, jumping from $2.43 to $2.56 before retracing back to $2.50 at the time of writing.
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