Ripples RLUSD to Debut on Dec. 17 Experts Warn of Early Volatility Risks
Ripple (XRP) will launch its USD-denominated stablecoin, RLUSD, on global exchanges tomorrow, December 17, 2024. The stablecoin will integrate with both the XRP Ledger and Ethereum blockchains. Ripple aims to deliver enterprise-focused solutions, leveraging its experience in cryptocurrency and traditional financial systems.
RLUSD will initially be available on platforms such as Uphold, Bitso, MoonPay, Archax, and CoinMENA. In the coming weeks, Ripple plans to expand availability to exchanges like Bullish, Bitstamp, and Mercado Bitcoin. This phased approach is expected to ensure smooth market adoption.
The stablecoins reserves will consist of US dollar deposits, government bonds, and cash equivalents. Ripple will publish monthly third-party attestations to maintain transparency and build trust. These measures aim to guarantee stability and ensure RLUSDs backing remains secure.
RLUSD Supports Payments and Collateralization
Ripple plans to use RLUSD for global payments, cross-border settlements, and liquidity access. The stablecoin will also support treasury operations and remittance flows for enterprise clients. Ripple Payments will integrate RLUSD into its operations starting early next year to enhance its $70 billion annual payment volume.
The token will play a significant role in decentralized finance (DeFi), bridging traditional and digital asset systems. Additionally, RLUSD will facilitate collateralization for tokenized real-world assets, such as securities and commodities. This integration positions Ripple to capitalize on the growing demand for asset-backed tokens.
Ripple Addresses Regulatory Standards
Ripple launched RLUSD under the NYDFS limited purpose trust company charter, which is recognized for its rigorous regulatory standards. The approval reflects the stablecoins compliance with US financial regulations. Ripple expects clearer US regulatory frameworks to encourage greater adoption of stablecoins like RLUSD.
Brad Garlinghouse, Ripples CEO, emphasized that trust and expertise will drive RLUSDs success in the market. He added that stablecoins backed by strong reserves provide real utility for global financial operations. The company remains confident in RLUSDs ability to deliver reliability and efficiency to enterprises.
Ripple Targets Global Payments with RLUSD Launch
Ripple acknowledged that RLUSD may face volatility during its initial launch phase. High demand and speculative activity have led to reports of pre-launch supply shortages. David Schwartz, Ripples CTO, cautioned against market FOMO and urged patience as supply stabilizes.
Ripple anticipates that the volatility will subside once the market achieves supply-demand equilibrium. The company reassured users that RLUSDs stability is reinforced by its secure reserves. Ripples measured approach aims to minimize disruptions and foster long-term confidence in the stablecoin.
With RLUSDs launch, Ripple continues to bridge fiat and cryptocurrency systems, supporting enterprise payments and DeFi innovation. The stablecoins dual integration with XRP Ledger and Ethereum enhances its accessibility and utility for global markets.
Read more: https://www.tronweekly.com/ripples-rlusd-to-debuts-on-dec-17/
Text source: TronWeekly
