RLUSD, Ripple Stablecoin, to Launch in a Few Weeks, Says CEO

The crypto industry is waiting for the new stablecoin RLUSD, announced by Ripple in April. Ripple CEO Brad Garlinghouse is now talking about “weeks, not months” until the debut. RLUSD has been tested since August.

XRP, Ripple’s first and so far only cryptocurrency, has lost steam

Despite two court victories by Ripple against the US Securities and Exchange Commission (SEC), XRP has been trading well below 1 US dollar since the end of 2021 and is currently a good 80 percent away from its 2018 highs. Ripple’s concept of establishing XRP as an international bridge currency has not worked. But back in April, Ripple made headlines with the announcement that it would launch its own stablecoin and thus diversify its business model.

Since then, market participants have been waiting eagerly to see how the planned Ripple stablecoin RLUSD will perform in practice. According to Ripple CEO Brad Garlinghouse, the launch of RLUSD will take place “in weeks, not months.”

Garlinghouse made this statement at the Korea Blockchain Week in Seoul, Wednesday, September 5th, He pointed out that RLUSD has been tested internally at Ripple since the beginning of August and will ensure its 1:1 link to the US dollar through cash reserves, short-term government bonds and comparable financial products.

For Ripple, RLUSD is a billion-dollar bet. The declared goal is to use the Ripple stablecoin to catch up with the current market leaders Tether (USDT) and USDC. RLUSD will initially be available on the Ripple/XRP and Ethereum (ETH) blockchains.

Ripple hopes that its growing contacts with the traditional financial industry will provide a good starting point for RLUSD and points to forecasts that demand for securely capitalized stablecoins will grow rapidly in the coming years. However, RLUSD is still lacking approval in the USA. This may be due to the fact that the SEC has until the beginning of October to appeal the latest XRP ruling.

Conclusion: Ripple Stablecoin RLUSD – potential must be proven

Ripple board member Monica Long recently outlined in July how Ripple wants to change towards becoming a financial services provider and why the stablecoin RLUSD plays a central role in this. The first test for the concept will be the market launch of RLUSD, and the launch in the fall promised by CEO Garlinghouse takes into account the tense relationship with the SEC.

Experts also point to PayPal USD, a stablecoin that the global payment service provider has been responsible for for around a year. PayPal USD still does not have a market capitalization of even $1 billion – for comparison: Tether’s market capitalization is currently just under $120 billion and USDC’s is almost $35 billion. Under these circumstances, the attack on the top dogs will not be a sure thing for Ripple and RLUSD.

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(Featured image by vjkombajn via Pixabay)

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