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Author: Abdulkarim Abdulwahab

Ex IMF Director and Bank of India Governor Appointed to Ripple Stablecoin Advisory Board

As the Ripple stablecoin, RLUSD, becomes publicly available, the company has appointed several influential figures to its advisory board.Among the most prominent names is Raghuram Rajan, a former director of the International Monetary Fund (IMF). This appointment caught the attention of the XRP community, with several commentators discussing the strategic significance of including such high-profile figures in the RLUSD project.Expertise Rajan Brings to Ripple Stablecoin Advisory BoardRajan served as the IMF's Director of Research and Chief Economist from 2003 to 2006. Later, he became the 23rd Governor of the Reserve Bank of India (RBI) from September 2013 to September 2016. While at the RBI, he also became Vice-Chairman of the Bank for International Settlements in 2015.In 2005, at the Federal Reserve's annual Jackson Hole conference, Rajan warned about the increasing risks in the financial system. While predicting a potential financial crisis, he suggested measures to mitigate these risks. Former U.S. Treasury Secretary Lawrence Summers initial dismissed his predictions, labeling them as "misguided." However, after the 20072008 financial crisis, Rajan's warnings were widely recognized as prescient.In November 2008, Rajan took on the role of honorary economic adviser in India, contributing policy notes. In August 2012, he was appointed Chief Economic Adviser to India's Ministry of Finance.Now, Raghuram Rajan is joining the RLUSD advisory board to offer expert guidance on financial, regulatory, and operational matters, helping to ensure the stability and growth of Ripple's stablecoin. Rajan Bullish Comment on RLUSD LaunchCommenting on the launch of RLUSD, Rajan expressed that stablecoins have the potential to become the backbone of payments. According to him, they provide a secure and efficient alternative to traditional systems.He specifically highlighted that RLUSD, with its focus on compliance and reliability, aims to set new standards for trust and play a key role in shaping the future of payments."Joining the Advisory Board allows me to counsel RLUSD as it embarks on its journey in the rapidly evolving financial landscape, Rajan concluded.Other Big Names in Ripple's RLUSD Advisory BoardIn the advisory role, Rajan will collaborate with Kenneth Montgomery, former Chief Operating Officer of the Federal Reserve Bank of Boston. Besides, Ripple's RLUSD advisory board already includes notable figures such as former FDIC Chair Sheila Bair, David Puth, Vice Chairman of Partners Capital, and Ripple co-founder Chris Larsen.

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Heres How Ripple Stablecoin Will Maintain Its $1 Price, While Schwartz Says RLUSD Will Boost Liquidity for XRP

Author: Sam Wisdom Raphael

United States

Source: The Crypto Basic

Dec 18, 2024 03:35

Heres How Ripple Stablecoin Will Maintain Its $1 Price, While Schwartz Says RLUSD Will Boost Liquidity for XRP

A prominent XRPL validator explains how the Ripple stablecoin RLUSD could maintain parity with the dollar.Ripple's newly launched stablecoin, RLUSD, has been a subject of discussion in the XRP community following its debut on four exchange partners. The launch came shortly after Ripple secured regulatory approval from the New York Department of Financial Services (NYDFS). While many market participants expressed enthusiasm about the stablecoin, some misunderstood its role, expecting price volatility that could create profits. However, experts have explained why RLUSD will always remain pegged at $1.RLUSD Will Maintain Its $1 PriceVet, a prominent XRPL validator, recently addressed these misconceptions. In a disclosure on X, Vet pointed out the mechanism behind RLUSD's stability. Notably, he stressed that it ensures the price constantly aligns with $1. https://twitter.com/Vet_X0/status/1868610967333896522This mechanism revolves around Ripple's minting and redemption process. Vet explained that if RLUSD trades significantly above $1, say $589, market participants would immediately capitalize on this. Institutions would mint RLUSD directly from Ripple at a 1:1 dollar conversion and sell it for profit. This selling activity would create immense sell pressure, driving RLUSD back to its intended price of $1. Conversely, if RLUSD trades below $1, such as at $0.589, buyers would seize the opportunity to purchase it at a discount. They could then redeem it with Ripple for its full $1 value. The resulting buy pressure would force RLUSD's price upward until it stabilizes at $1. Notably, this self-correcting mechanism guarantees that RLUSD remains anchored to the dollar unless Ripple's minting and redemption system experiences disruptions. The efficiency of this system is paramount, especially considering previous cases of stablecoin depegs like the one involving TerraUSD (UST).Vet noted that the mechanism forms the backbone of RLUSD's stability. The minting and redemption capability ensures no prolonged deviation from the $1 peg. As a result, those seeking quick profits through volatility must understand that RLUSD is not an investment vehicle but a reliable stablecoin. Previously, Ripple CTO David Schwartz recently stressed this fact, issuing a warning to market participants who would want to FOMO into the project for this reason. RLUSD Could Boost Liquidity for XRPMeanwhile, Schwartz also discussed the benefits of stablecoin following the launch announcement. He emphasized that the stablecoin will enhance on-chain liquidity while expanding use cases for both RLUSD and XRP. https://twitter.com/JoelKatz/status/1868692620840710265According to him, the introduction of a trusted stablecoin like RLUSD will boost development and adoption on the XRPL network. Notable XRP community figure WrathofKahneman (WOK) also spotlighted this. He highlighted how RLUSD's benefits extend beyond burning XRP. According to him, the stablecoin's benefits lie in significantly boosting liquidity on the XRPL. This increased liquidity makes XRP more functional as a bridge currency and allows seamless value transfer between various assets. WOK noted that RLUSD's impact could grow further as new denominations emerge. With additional currencies making their way to the XRPL, bridging between these assets and XRP will become simpler and more efficient. This utility strengthens XRP's value proposition as a source of liquidity on demand. According to WOK, while the XRP price may see short-term upward movement due to RLUSD's launch, this increase would reflect market sentiment rather than RLUSD's direct usage. At press time, XRP trades for $2.57, up 7.33% over the past 24 hours.

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Ripple Stablecoin Potential Launch Date Revealed

Author: Lele Jima

United States

Source: The Crypto Basic

Dec 01, 2024 03:35

Ripple Stablecoin Potential Launch Date Revealed

Ripples stablecoin is gearing up for its highly anticipated mainnet launch, with FOX Business revealing its potential launch date. FOX Business journalist Eleanor Terrett reported that the New York Department of Financial Service (NYDFS) had signaled its intention to approve RLUSD for its mainnet launch. Citing sources familiar with the matter, the journalist claimed that the San Francisco-based company is targeting December 4 for the mainnet launch of the stablecoin. https://twitter.com/EleanorTerrett/status/1862603679284572610Recall that Ripple introduced RLUSD in April 2024 and proceeded with its beta launch in August, rolling out the stablecoin on XRP Ledger (XRPL) and Ethereum. Ever since, the stablecoin has been in beta, with no precise date for a mainnet launch. The wait for RLUSDs mainnet launch might end soon, as sources claim Ripple is eyeing December 4 as the possible launch date following NYDFS approval. At press time, neither Ripple nor NYDFS has issued an official statement backing this claim. RLUSD Use Case For context, Ripple focuses on leveraging blockchain technology to offer faster and cheaper cross-border settlements for financial institutions. Interestingly, the company uses XRPLs native token, XRP, as a bridge currency between two fiats to settle these transactions. However, the token is embroiled in an intense legal battle between the U.S. SEC and Ripple. Even though a federal court declared XRP a non-security, the continuation of the case in the Court of Appeals for the Second Circuit still puts the token under regulatory scrutiny. The anticipated launch of RLUSD could serve as an alternative to XRP across Ripples payment solutions. Financial institutions seeking to utilize Ripples payment solution without exposure to regulatory uncertainty and volatility can choose RLUSD instead of XRP. Furthermore, customers can also adopt the stablecoin as a store of value upon its mainnet launch. Once approved, RLUSD would strive to dominate the stablecoin market, valued at $190 billion, rivaling top players like Tether and Circle. Ripple Navigates NYDFS Strict Regulation In the absence of stablecoin regulation at the federal level, Ripple pursued regulatory approval for RLUSD through the state level. The NYDFS adopts a strict approach to regulating cryptos, including stablecoins. Companies seeking to launch stablecoins within its jurisdiction must meet certain conditions, including obtaining a limited-purpose trust charter. Ripple already met this requirement by acquiring the NYDFS-regulated entity Standard Custody & Trust Company in June. This move also helped to accelerate NYDFS approval of the stablecoin, according to sources with direct knowledge of the matter. Upon approval, Standard Custody will issue RLUSD to the stablecoins exchange partners, including Moonpay and Uphold.

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Ripple Stable Coin 107% Backed by US Treasury Bills, Cash Deposit, December Report Shows

Author: Elendu Benedict

United States

Source: The Crypto Basic

Jan 30, 2025 03:35

Ripple Stable Coin 107% Backed by US Treasury Bills, Cash Deposit, December Report Shows

Reserve reports for the Ripple USD (RLUSD) for December show secured financial instruments like US debt and cash deposits fully back the stablecoin.RLUSD maintains its peg with the US dollar through a 1:1 reserve backing as a centralized, fiat-collateralized stablecoin. A recent report shows that the RLUSD stablecoin is 107% backed by US Treasury bills and cash equivalents.RLUSDs Secured ReserveThe recently released audit report reveals details of RLUSDs reserve. Notably, prominent public accounting firm BPM conducted the audit on Standard Custody and Trust Company, a subsidiary of Ripple Labs and issuer of the stablecoin.According to the report, the accounting firm audited the firms report on the RLUSD stablecoins reserve on December 20 and 31, 2024. BPM examined and confirmed Ripple USDs reserve and distribution on those dates.The audited report disclosed RLUSDs outstanding supply and the market value of reserves on both dates. Specifically, on December 20, the stablecoins supply stood at $72,300,301, while the reserve value amounted to $78,212,154.Meanwhile, on December 31, RLUSDs had a supply of $77,208,201. In addition, reserve increased to $83,214,671, representing 107% of the outstanding supply. A detailed breakout shows that the stablecoins excessively backed reserve is invested in secured US-based financial instruments.As of December 31, the Ripple USD reserve consists of US Treasury bills, government money market funds, and cash deposits held by US-regulated financial institutions. In that order, the stablecoin issuer committed $30,095,603, $30,119,460, and $22,978,696 into the instruments.RLUSD ReserveRLUSD ReserveRLUSD Stabilizes Amid Initial FluctuationMeanwhile, the stablecoins market price has stabilized around the $1 valuation as correlation with the US dollar and supply continues to grow. This comes after initial price fluctuations in its early days.For context, RLUSDs valuation reached $1,200 at some point before launch as market users scrambled to acquire the stablecoin. Ripple CTO David Schwartz explained that the price abnormality came as a user was willing to pay that high for the stablecoin, which briefly adjusted its price to match the order.RLUSD also spiked 6% earlier in the month after XRP crossed $3. Again, Schwartz explained the anomaly, attributing the price uptick on the XPMarket to market dynamics among decentralized exchanges (DEXs).Meanwhile, the recent sustained stability could also be attributed to the growing liquidity from adoption among networks and exchanges. For context, the Root Network recently added support for RLUSD trading, joining the ever-increasing list of protocols offering the stablecoin to clients.Per XRMarket, RLUSD now has a market cap of $13.8 million, ranking 7th in the stablecoin ranking.

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TON Now Targets US Market as Donald Trump Administration Promises Reform

Author: Olivia Stephanie

United States

Source: The Crypto Basic

Jan 15, 2025 03:40

TON Now Targets US Market as Donald Trump Administration Promises Reform

The TON Foundation, which has close ties to Telegram Messenger LLP, is shifting its focus to the United States. This stems from expectations of a favorable regulatory environment under the forthcoming Donald Trump administration. The move aims to capitalize on opportunities in the worlds largest economy as the blockchain industry anticipates potential policy shifts. Notably, the president-elect awaits inauguration on the 20th of this month.Per a Bloomberg report, the foundation announced on Tuesday the appointment of Manuel Stotz as its new president, replacing Steve Yun, who will remain a board member. Stotz, a seasoned investor and founder of Kingsway Capital Partners Ltd., will oversee efforts to strengthen TON's position in the U.S. market. The transition aligns with the foundations emphasis on leveraging a more conducive regulatory environment in the United States.Leadership Transition The appointment of Stotz marks a major leadership change for the TON Foundation. With extensive experience in digital assets, Stotz will guide the foundation's initiatives in the U.S., a market that presents substantial growth opportunities for blockchain technology. As the TON Foundation sets its sights on U.S. expansion, Toncoin (TON), its native token, experienced notable price activity. On the day of the announcement, Toncoin changed hands at $5.35, reflecting a 4.05% increase in 24 hours, despite a 5.70% decline over the past week.Prospects Under TrumpThe TON Foundation's shift aligns with emerging discussions on crypto policy under the anticipated Trump administration. David Sacks, Trumps incoming AI and Crypto Czar, is engaging with industry stakeholders to address critical regulatory concerns. Key priorities include tackling issues like de-banking and revising accounting rules that classify digital assets as liabilities for banks. These measures could significantly impact the operational environment for blockchain firms in the U.S.Reports indicate that Trump may address these issues through executive orders immediately upon assuming office.In preparation for his administrations policy focus, a luncheon titled America First: The Future of Space, AI, and Tech was held on December 20 at Mar-a-Lago. The event brought together leading tech investors and policymakers to discuss innovation and regulatory strategies.

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