As a seasoned analyst with years of experience in the dynamic world of cryptocurrencies, I’ve seen my fair share of stablecoins and their launches. The upcoming debut of Ripple USD (RLUSD) on Dec. 4 is undeniably an exciting development that could reshape the landscape, particularly for institutional players.
Ripple is set to debut its U.S. dollar-backed digital currency, Ripple USD (RLUSD), with the anticipated release scheduled for December 4th. This upcoming launch has sparked great excitement within the cryptocurrency community.
As an analyst, based on information from Fox Business, I anticipate that Ripple will debut RLUSD on December 4th, following the nod from the New York Department of Financial Services for this launch.
It’s advisable to avoid any tokens that claim to be RLUSD (Ripple US Dollar) until a formal declaration verifies their launch, as issued by the blockchain company itself.
Listings for RLUSD (the token from the Regional Loop University School District) have been showcased ahead of time on prominent crypto data platforms such as CoinGecko and CoinMarketCap.
RLUSD will initially launch on Ripple’s XRPL and Ethereum
Presented in June, RLUSD operates as a U.S. dollar-tied stablecoin, fully collateralized with U.S. dollar reserves, short-term U.S. Treasury bonds, and other liquid assets of similar value.
Starting from early August, the RLUSD stablecoin has been undergoing testing on both Ripple’s XRP Ledger (XRPL), a publicly accessible decentralized blockchain platform, and Ethereum’s main network. Ripple intends to broaden the availability of RLUSD across more blockchains and DeFi platforms in the future.
Even though RLUSD hasn’t started yet, Ripple Labs-associated XRP (XRP) has been on a surge lately, regaining its position as the third largest cryptocurrency by market capitalization around early December.
RLUSD and XRP will “complement each other”
After RLUSD becomes accessible, Ripple intends to incorporate both RLUSD and XRP into its international payment system for catering to its worldwide clientele, as stated in their announcement regarding RLUSD’s beta testing.
In June, Ripple’s president, Monica Long, stated that the RLUSD (Ripple’s USD-pegged token) was designed to work harmoniously with, and enhance, the functionality of XRP.
Based on certain reports, Ripple views the pairing of RLUSD with XRP as advantageous, as these two digital assets will be linked together.
By having a large supply of XRP readily available on various trading platforms, it contributes to boosting the liquidity of RLUSD. Furthermore, the stability of RLUSD’s price is maintained through strategic pairings that help prevent it from deviating too far from its intended peg.
RLUSD will be more focused on large institutional players
As per the statement made by Brad Garlinghouse, CEO of Ripple Labs, RLUSD (Ripple’s stablecoin) is expected to prioritize serving larger institutional investors.
In a discussion with Jacquelyn Melinek of Token Relations in September 2024, Garlinghouse expressed that there seems to be room for another competitor in the stablecoin market, one that prioritizes serving institutional clients and maintaining compliance.
He also mentioned that Ripple has already used stablecoins in its payment flows, minting 20% of Circle’s USD Coin (USDC).
Clearly, about a year and a half ago, a significant incident occurred in the U.S. involving USDC (a digital currency), and it seemed like there was a chance for a reputable entity that already collaborates with many financial organizations to expand into that market,” Garlinghouse noted.
As a researcher, I’ve recently noticed an intriguing development in the XRP ecosystem. While Garlinghouse implied that Ripple Labs would primarily focus on institutional adoption, some users have reported successful addition of the stablecoin to their self-custodial XRP wallet, Xaman, on December 4th. This unexpected user-driven action adds a layer of complexity to the broader strategy of Ripple Labs and could potentially influence the trajectory of XRP in the digital asset market.
cryptoMoon reached out to both Ripple and Xaman, hoping for their insights on the upcoming release of RLUSD, yet they didn’t respond by the time our article was posted.
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2024-12-04 14:43