Ripple has announced the release of its long-awaited stablecoin, RLUSD, after receiving approval from the New York Department of Financial Services (NYDFS) last week. The coin aims to advance Ripple’s goal of becoming the go-to network for international payments.
RLUSD is backed 1:1 by the US dollar and will be available on select exchanges including Uphold, Bitso, MoonPay, Archax, and CoinMENA. Further availability is planned in the future. According to Jack McDonald, Ripple’s senior vice president of stablecoins, “Utility is at the forefront, and doing that in a regulated and compliant way is what we’re all about.”
Stablecoins are designed to maintain a constant value pegged to fiat currencies like the US dollar. RLUSD’s stability makes it appealing to those interested in digital assets but hesitant about cryptocurrency volatility.
Ripple plans to integrate RLUSD into traditional financial institutions, with Ripple Payments partnering with global banks to facilitate international transactions starting early next year. The stablecoin space has seen a surge in popularity over the past few years, with major players like Tether’s USDT and Circle’s USDC dominating 90% of the market.
RLUSD stands out due to its regulatory compliance, which will appeal to investors seeking a more secure option. McDonald noted that adhering to NYDFS guidelines is complex and requires significant requirements to manage the business forward.
Source: https://fortune.com/crypto/2024/12/16/ripple-announces-launch-rlusd-stablecoin