Ripple’s new stablecoin, ripple USD or RLUSD, will begin trading next Tuesday, following approval from the New York State Department of Financial Services earlier this month. The U.S. dollar-backed stablecoin will be available on some global exchanges, with plans to expand to others in the coming weeks.
The launch comes amid hopes for clearer regulations in the crypto industry under President-elect Donald Trump’s term. Ripple’s decision to create its own native stablecoin is driven by the growth of cross-border payments and the need for a more cost-effective and operationally efficient solution.
“We’re hearing from the market that people are looking for an alternative to the incumbents,” said Jack McDonald, Ripple’s senior vice president of stablecoins. “There’s some concern about concentration in the market today, which is something regulators are looking at.”
Ripple aims to use its native stablecoin to complement its existing business, using both XRP and stables. The company will issue RLUSD on both the ethereum blockchain and XRP ledger, potentially increasing demand for XRP.
The move follows other recent announcements from major players in the crypto industry, including a joint dollar-backed stablecoin launch by Robinhood, Kraken, Galaxy Digital, and others. Other companies like MercadoLibre and Revolut are also reportedly discussing similar initiatives.
Source: https://www.cnbc.com/2024/12/16/ripples-new-stablecoin-for-payments-will-be-available-to-trade-tuesday.html