Ripple Labs announced the release of a new stablecoin Ripple USD (RLUSD), backed by the US dollar. RLUSD is expected to be released in the second half of 2024.
What is RLUSD
Ripple, a well-known blockchain company, introduced its new stablecoin Real USD for use in XRP Ledger and Ethereum networks. At the XRP Ledger Apex summit, Ripple CEO Brad Garlinghouse announced RLUSD and emphasized its importance for future financial transactions. The token will provide broader utility across various blockchains and help stabilize transactions in the XRP Ledger (XRPL).
Key characteristics of the new stablecoin:
- transparency;
- reliability.
This is ensured by launching the token on the XRP Ledger and Ethereum. The company plans for RLUSD to compete with popular stablecoins such as USDT and USDC.
Use Cases and Development of Real USD
David Schwartz, the company's CTO, noted that the new asset will help diversify use cases and improve payment infrastructure, bridging traditional and decentralized financial systems.
Ripple Labs also announced the completion of the acquisition of Standard Custody, a firm licensed by the New York Department of Financial Services. Key features include:
Category Description Backing 100% backed by US dollar deposits, short-term US Treasury bonds, and other cash equivalents. Use Cases It will be used not only in the institutional sector but also in decentralized finance.
Developers emphasize that the introduction of a reliable corporate-level "stablecoin" in the XRP Ledger will create more use cases, liquidity, and opportunities for developers and users.
Schwartz also noted that the current stablecoin ecosystem is not as diverse and reliable as it could be, estimating the current segment value at $150 billion. In his opinion, there is room in the market for another major player, and RLUSD could become that asset.
Ripple Coin (XRP)
Ripple Coin (XRP) is one of the leading cryptocurrencies designed to provide instant and low-cost international payments. Created by Ripple Labs in 2012, XRP is used in the RippleNet network to provide real-time liquidity and reduce the cost of cross-border transactions. Initially, XRP was created to address the issue of slow and expensive international transfers faced by traditional banking systems.
However, Ripple faces several challenges and issues. In December 2020, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, claiming that XRP is an unregistered security. This lawsuit caused significant fluctuations in the value of XRP and created uncertainty about its future. Despite this, Ripple continues to develop its technologies and establish partnerships with financial institutions worldwide.
Additionally, critics argue that the high centralization of XRP contradicts the principles of decentralization that underpin most cryptocurrencies. Despite this, Ripple Labs is actively working to improve its infrastructure and expand the use cases for XRP, making it an important tool for financial institutions globally.
