Ripple has officially launched its U.S. dollar-pegged stablecoin, fully backed by fiat deposits, government bonds, and cash equivalents.
Ripple, the crypto company behind XRP coin, has introduced its new product – RLUSD stablecoin designed for cross-border payments, DeFi integration, and fiat-to-crypto bridging.
The new regulated cryptocurrency is approved by the New York Department of Financial Services (NYDFS) and fully backed by USD deposits, government bonds, and other cash equivalents.
It is now available on global exchanges, including Uphold, Bitso, MoonPay, Archax, and CoinMENA, with planned additional listings on Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash platforms, among others.
The stablecoin will be integrated into Ripple’s payment solutions and is also expected to be leveraged through partnerships with other fintech companies, in particular, those focusing on cross-border business transfers, foreign exchange markets, real-world asset tokenization, on-ramp for bringing fiat on-chain, and P2P remittances.
The stablecoin is designed to offer a more stable transaction option within Ripple’s ecosystem, which would likely influence the market stance of XRP, Ripple’s native cryptocurrency. In fact, since the announcement, XRP has already risen by 6.7% to reach $2.61.
The introduction of RLUSD is expected to enhance market liquidity, reduce the volatility of the ecosystem, and drive higher demand for XRP. As RLUSD transactions are processed on both the XRP Ledger (XRPL) and the XRP-EVM sidechain, and gas fees paid in XRP with its limited supply of 100 billion tokens result in its partial burning during transactions, demand for XRP is disposed to grow.
With the addition of a new token to its ecosystem, Ripple has also strengthened its advisory board with experts like Kenneth Montgomery, former first vice president and chief operating officer of the Federal Reserve Bank of Boston, and former RBI Governor Raghuram Rajan, to provide regulatory, financial, and operational guidance.
The security and integrity of the backing reserve would be monthly attested by independent third-party auditors. The firm has also adopted stringent standards and policies to protect the stablecoin holders. RLUSD regulatory compliance is one of its most attractive features for enterprises, as well as Ripple’s long-standing cooperation with regulators and policymakers across the globe, making it one of the few trusted crypto brands.
Earlier this year, Ripple acquired the regulated platform for digital assets Standard Custody & Trust Co., expanding its portfolio of regulatory licenses and potential product line.
