Ripple CEO Brad Garlingouse Announces Timeline for the Launch of RLUSD
During the Korean Blockchain Week, Ripple’s CEO, Brad Garlinghouse, provided an update on the forthcoming native stablecoin on the XRP Ledger, RLUSD. Garlinghouse announced that the launch of RLUSD is imminent, stating that it will be introduced to the market in “weeks, not months,” contrary to previous expectations.
Proposal for the RLUSD
The proposal for the Ripple USD (RLUSD) was initiated in March following the detachment of the second-largest stablecoin in the crypto sector, USDC. This event led Ripple to consider offering a USD-pegged asset, supported by the organization’s reputation in the industry. Garlinghouse revealed that RLUSD will be fully backed by US dollar assets, such as US dollar deposits, short-term Treasury bills, and other cash equivalents, aligning with established stablecoins like USDT and USDC.
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USD Backed RLUSD
The decision to back RLUSD with traditional assets is significant in light of the market’s recent preference for fiat and crypto-backed stablecoins over algorithmic stablecoins, driven in part by the depegging of Terra UST in 2022, which resulted in substantial market losses. Currently in a test beta stage, Ripple is privately experimenting with RLUSD and, as of August 21, has minted 185 RLUSD in its Treasury.
Furthermore, RLUSD’s deployment on the XRP Ledger and the Ethereum network will enhance its usability, leveraging the Ethereum ERC-20 standard to introduce new features to the XRPL. This move aligns with the broader trend of stablecoins expanding their presence across multiple blockchain networks.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
