Ripple Announces New Stablecoin, Ripple-USD (RLUSD), Ready for Deployment

The company’s president, Monica Long, has shared insights into the stablecoin’s role in Ripple’s operations, emphasizing its synergy with XRP

Ripple is now ready to deploy its new stablecoin, named Ripple-USD (RLUSD), pending regulatory approval, the company announced.

Monica Long, president of Ripple, shared her insights on the role of the stablecoin within Ripple’s operations, highlighting its synergy with XRP and the potential impact on users and developers within the ecosystem.

According to Long, RLUSD is designed to complement Ripple's payment system by offering an alternative to its native token, XRP. While XRP continues to be integral to the quick and affordable transfer of illiquid currencies, 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 caters to clients who prioritize consistency over market fluctuations and will serve those who wish to hold stablecoins.

Moreover, Long explained that RLUSD will attract developers to the XRPL, enabling them to build decentralized finance (DeFi) applications with greater utility and scalability.

As a leading company in digital payments, Ripple has processed over $70 billion in blockchain transactions to date.

While RLUSD is set to expand the Ripple ecosystem, Long emphasized that XRP would remain crucial to the XRPL, especially for cross-border transactions involving illiquid currencies. The two assets are designed to work together to meet the diverse needs of Ripple's clients.

Highlighting the priorities of regulatory compliance and financial stability in launching a successful stablecoin, Long revealed that Ripple has taken significant steps to meet these standards.

This includes the acquisition of Standard Custody and a license from the New York Department of Financial Services (NYDFS) for RLUSD, which ensures that it meets the department's stringent requirements for stablecoin issuance, including being fully backed by reserves.

Now fully operational, RLUSD is awaiting regulatory clearance before being launched by Ripple in a move that will finally integrate the stablecoin into the XRP ecosystem.

This measured approach underscores the company's commitment to transparency and adherence to regulatory guidelines as Ripple aims to position the new token as a leader in the growing stablecoin sector, which is projected to reach $3 trillion over the next five years.

As demand for stablecoins among Ripple's clients is high, especially in regions like Asia Pacific, Europe, and Australia, the integration of this asset aligns 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.

This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not necessarily reflect the opinion of Times Tabloid. Readers are urged to conduct their own due diligence 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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