Ripple Launches USD-Backed Stablecoin, $RLUSD

Eight months after announcing plans to develop its own stablecoin, $XRP issuer Ripple has launched Ripple USD ($RLUSD), a U.S. dollar-backed stablecoin

Major crypto exchange Binance has officially announced the launch of its new stablecoin, Binance USD (BUSD), in partnership with Paxos Trust Company. The stablecoin will be pegged to the U.S. dollar and will be available for trading, deposits, and withdrawals on Binance and Paxos platforms.

BUSD is designed to provide a stable and transparent medium of exchange for crypto traders and enthusiasts. The stablecoin will be fully backed by fiat currency deposits held in segregated accounts at U.S. banks, ensuring its stability and regulatory compliance.

According to the announcement, BUSD is issued and redeemed by Paxos and is approved by the New York State Department of Financial Services (NYDFS). The stablecoin is also subject to regular audits and attestations by Paxos to maintain transparency and adherence to regulatory standards.

The launch of BUSD is a significant step for Binance, as it aims to strengthen its presence in the stablecoin market and cater to the growing demand for stable crypto assets. BUSD is expected to play a crucial role in facilitating crypto trades and offering a stable option for traders navigating the volatile crypto market.

In other crypto news, eight months after announcing plans to develop its own stablecoin, XRP issuer Ripple has officially launched Ripple USD ($RLUSD), a U.S. dollar-backed stablecoin, on major exchanges on December 17, 2024.

The launch of $RLUSD offers crypto traders another USD-backed stablecoin with strong regulatory compliance and easier access to trading and DeFi opportunities.

$RLUSD is launched under the New York State Department of Financial Services (NYDFS) trust company charter, with the following use cases, as assured by Ripple:

As part of the $RLUSD launch, Riplle has also formed an advisory board for the stablecoin to ensure the company’s dedication to excellence and integrity in the world of stablecoins and digital finance. The board members are:

“Stablecoins could become the backbone of private payments by offering a secure, scalable, and efficient alternative to traditional systems. With its focus on compliance and reliability, RLUSD aims to establish new standards for trust and to play a pivotal role in shaping the future of payments. Joining the Advisory Board provides me an opportunity to counsel RLUSD as it embarks on its journey in the rapidly evolving financial landscape.”

- Raghuram Rajan, Former Governor, Reserve Bank of India

Next, Ripple Payments will start to use $RLUSD in 2025 to support enterprise customers, benefitting from Ripple’s more than $70 billion in payment volume and 90+ payout markets.

Earlier in April 2024, Ripple announced its plan to launch a stablecoin that will be fully backed by U.S. dollar deposits and government securities at a trust company chartered by the New York State Department of Financial Services. The stablecoin will be pegged on a 1:1 basis to the U.S. dollar and is set to launch in the second half of 2024.

The stablecoin, which will be called RLUSD, is part of Ripple's strategy to expand its presence in the payments and digital asset markets. In recent years, stablecoins have emerged as a critical component of the crypto ecosystem, facilitating faster and cheaper transactions compared to traditional payment methods.

This article is published on BitPinas: Ripple Launches USD-Backed Stablecoin, $RLUSD

What else is happening in Crypto Philippines and beyond?