In a highly anticipated move, Ripple is set to make its U.S. dollar-backed stablecoin RLUSD broadly accessible to users starting Tuesday, December 17. The launch follows the token receiving final approval from the New York Department of Financial Services and aims to bring a new major player to the rapidly growing stablecoin market.
RLUSD Rolling Out on XRP Ledger and Ethereum
According to Ripple’s press release, RLUSD will initially be listed on several crypto exchanges and platforms, including Uphold, MoonPay, Archax, and CoinMENA. In the coming weeks, the stablecoin is set to expand its reach with listings on additional platforms such as Bitso, Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash.
The launch makes RLUSD accessible to users on both the XRP Ledger, which is closely associated with Ripple, and the Ethereum network. This dual-network approach aims to maximize the token’s availability and utility for a wide range of users and applications.
Former Central Bankers Join Advisory Board
Ripple also announced the addition of two high-profile former central bankers to its stablecoin advisory board. Raghuram Rajan, former governor of the Reserve Bank of India, and Kenneth Montgomery, former first vice president and COO of the Federal Reserve Bank of Boston, will join existing board members Sheila Bair, former chair of FDIC, and Chris Larsen, co-founder and executive chairman of Ripple.
“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,” said Ripple CEO Brad Garlinghouse in a statement.
Competing in the Stablecoin Market
With RLUSD, Ripple aims to compete for a piece of the rapidly expanding stablecoin market, currently dominated by Tether’s USDT ($140 billion) and Circle’s USDC ($40 billion). As stablecoins increasingly serve as a bridge between traditional finance and digital asset markets, Ripple’s entry could shake up the competitive landscape.
Jack McDonald, senior vice president of stablecoin at Ripple and former CEO of Standard Custody & Trust, stated that RLUSD will initially be available in the Americas, Asia-Pacific, UK, and Middle East regions through Ripple’s distribution and exchange partners. However, the token won’t be immediately accessible in the E.U. as Ripple currently lacks the necessary license under the bloc’s MiCAR regulations.
Potential Early Price Volatility
Despite aiming to maintain a stable $1 price, Ripple’s chief technology officer David Schwartz warned of potential RLUSD price volatility in the early days due to high demand from traders and limited initial supply.
“There may be supply shortages in the very early days before the market stabilizes,” Schwartz cautioned in an X post, adding that some traders “are willing to pay as much as $1,200 token price to buy a fraction of RLUSD.”
As the stablecoin market continues to evolve and regulatory frameworks take shape, Ripple’s RLUSD launch marks a significant milestone in the company’s efforts to establish itself as a major player in the digital asset space. However, with the potential for early price volatility and the challenges of entering a highly competitive market, all eyes will be on RLUSD in the coming weeks and months.
