Ripple launches RLUSD stablecoin on major exchanges

Ripple has announced the global availability of its stablecoin, Ripple USD (RLUSD), on major exchanges.

RLUSD is a USD-denominated stablecoin developed by Ripple and is designed for enterprise use, with a focus on trust, utility, and compliance. The stablecoin is available on the XRP Ledger and Ethereum blockchain, providing users with flexibility and scalability in various financial scenarios. Ripple has stated that the RLUSD token is fully backed by U.S. dollar deposits, U.S. government bonds, and cash equivalents to ensure its stability, reliability, and liquidity. To provide further transparency, Ripple will publish monthly, third-party attestations of RLUSD's reserve assets conducted by an independent auditing firm.

Brad Garlinghouse, Ripple's CEO, explained the strategic regulatory positioning of RLUSD: "Early on, Ripple made a deliberate choice to launch our stablecoin under the NYDFS limited purpose trust company charter, widely regarded as the premier regulatory standard worldwide. As the U.S. moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD, which offer real utility and are backed by years of trust and expertise in the industry."

RLUSD is currently available on platforms such as Uphold, MoonPay, Archax, and CoinMENA with plans to expand to further exchanges including Bitso, Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash in the upcoming weeks.

The stablecoin aims to support various financial use cases, such as facilitating instant cross-border payment settlements, offering liquidity for remittance and treasury operations, and integrating with decentralised finance (DeFi) protocols. RLUSD is also designed to effectively bridge the gap between traditional fiat currencies and the crypto ecosystem, enhancing the process of entering or exiting the digital asset space. Furthermore, it can provide collateralisation for trading tokenised real-world assets such as commodities, securities, and treasuries onchain.

Ripple Payments plans to start using RLUSD to facilitate global transactions early next year. The service has reportedly handled USD $70 billion in payment volume and covers more than 90 payout markets, representing over 90% of the daily FX market worldwide.

Furthermore, Ripple has attracted prominent advisory board members to support the rollout of RLUSD. Raghuram Rajan, former Governor of the Reserve Bank of India, and Kenneth Montgomery, former First Vice President and Chief Operating Officer of the Federal Reserve Bank of Boston, have joined the board. They will offer guidance on regulatory, financial, and operational aspects to bolster RLUSD's growth and stability.

Rajan commented on the importance of stablecoins: "Stablecoins could become the backbone of private payments by offering a secure, scalable, and efficient alternative to traditional systems. With its focus on compliance and reliability, RLUSD aims to establish new standards for trust and to play a pivotal role in shaping the future of payments. Joining the Advisory Board provides me an opportunity to counsel RLUSD as it embarks on its journey in the rapidly evolving financial landscape."

Montgomery also highlighted the significance of this development in digital finance: "I am excited to join Ripple's advisory board at such a pivotal moment for digital finance. Stablecoins are rapidly emerging as a cornerstone of the payments landscape, delivering the speed, efficiency, and cost-effectiveness that traditional systems often struggle to achieve. I look forward to collaborating with the Ripple team to support the global growth and adoption of RLUSD, unlocking new opportunities for financial inclusion and modernising the future of payments."

Ripple's initiative sets new benchmarks for stablecoins, combining regulatory compliance through its New York limited purpose trust company status with functionality, reflecting its continued focus on transparency and trust within digital assets.