Ripple has announced the upcoming launch of its stablecoin, Ripple USD (RLUSD), scheduled for release by the end of 2024. This stablecoin will be backed entirely by a segregated reserve of cash and cash equivalents, ensuring it can be redeemed 1:1 for US dollars.
Key Points
- Launch Information: Ripple plans to introduce RLUSD on both the XRP Ledger and Ethereum networks by late 2024. The stablecoin aims to provide significant liquidity for select trading pairs, facilitate instant settlements, and enable programmable financial transactions.
- Regulatory Issues: The U.S. Securities and Exchange Commission (SEC) has labeled RLUSD as an “unregistered crypto asset,” continuing its legal battle with Ripple that started in 2020.
Increased Focus on RLUSD
Earlier this year, Ripple announced its intention to launch a stablecoin tied to the US dollar, creating considerable excitement. CEO Brad Garlinghouse highlighted that RLUSD would bridge traditional finance and the cryptocurrency sector.
Although a precise release date has not been disclosed, the stablecoin’s inclusion on Ripple’s official website suggests that its launch is near. The website describes RLUSD as maintaining a stable value of one US dollar, fully backed by cash reserves, and redeemable 1:1 for US dollars on the XRP Ledger and Ethereum blockchains.
Advantages of RLUSD
Ripple’s team highlights several benefits of RLUSD:
- Enhanced Liquidity: Increased liquidity for specific trading pairs on centralized exchanges.
- Quick Settlements: Faster transaction processing.
- Support for Programmable Finance: Facilitation of programmable financial applications.
Ongoing SEC Dispute
The SEC’s criticism of RLUSD is part of its prolonged legal conflict with Ripple, which began in December 2020. The SEC accused Ripple and some executives of raising over $1.3 billion through an unregistered securities offering of XRP.
This legal battle has seen numerous developments and has become a focal point in the cryptocurrency community. The trial commenced in April 2024, with a resolution expected soon. Despite the ongoing legal challenges, Ripple has achieved three partial victories in 2023, each time positively impacting XRP’s price. Many industry observers believe Ripple holds a strong position against the SEC, and the final decision could significantly influence XRP’s market performance.
