Ripple Labs has been approved to launch its stablecoin RLUSD by the New York Department of Financial Services, marking a significant step into the stablecoin market.
Ripple’s Ambitious Stablecoin Plans
Ripple unveiled its plans for RLUSD in April, aiming to create a regulated, US dollar-backed stablecoin to compete with leading players like USDT and USDC. Ripple executives are confident that RLUSD could capture a substantial market share, projecting a market cap of $2 trillion by 2028. The stablecoin has been in beta since August, running on both the XRP Ledger and Ethereum networks, ensuring compatibility with various wallets and DeFi applications.
Key Features of RLUSD
RLUSD is a stablecoin pegged 1:1 to the U.S. dollar, ensuring stability and minimal volatility. The coin is fully backed by U.S. dollar deposits, short-term U.S. government Treasuries, and other cash equivalents. RLUSD is issued on two major blockchains—XRP Ledger and Ethereum—boosting its adaptability and usage across various platforms. It is issued as an ERC-20 token on Ethereum, facilitating its use in Ethereum-based dApps and exchanges.
Ripple's Strategic Expansion
Ripple's decision to launch RLUSD coincides with the rapid growth of the stablecoin market. The combined market capitalization of USDT and USDC stands at about $180 billion. RLUSD is designed to serve as a bridge for tokenizing traditional financial instruments on the blockchain, according to Ripple President Monica Long. The RLUSD launch has also positively impacted the value of XRP, which surged by 300% in the past 30 days.
The launch of RLUSD marks a crucial step for Ripple and its expansion in the growing stablecoin market, potentially transforming financial transactions through real asset tokenization.
