Ripple’s RLUSD scheduled for Dec. 17 launch

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As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I can’t help but feel a mix of excitement and caution regarding Ripple‘s (XRP) upcoming stablecoin launch, RLUSD. With a background that includes witnessing the rise and fall of numerous crypto projects, I’ve learned to approach new developments with a discerning eye.

Starting from Tuesday, December 17, I’ll have the opportunity to interact with Ripple’s US dollar-pegged stablecoin directly within the XRP Ledger and Ethereum blockchain network. This development promises a more seamless and diverse cryptocurrency investment landscape for me as an investor.

On December 17th, the digital payment giant, Ripple (XRP), announced it would launch its USD-pegged stablecoin, RLUSD, in the American, British, Middle Eastern, and Asian-Pacific markets.

After receiving final approval from the New York Department of Financial Services last week, RLUSD is now being launched. This approval marks the transition of the stablecoin from its testing phase to a widespread release on multiple platforms such as Uphold, MoonPay, Bitso, Bullish, Mercado, and CoinMENA.

According to Brad Garlinghouse, CEO of Ripple, the company deliberately introduced its RLUSD stablecoin following the guidelines of a New York Department of Financial Services (NYDFS) limited-purpose trust charter, which is recognized worldwide as the benchmark for regulatory standards.

With stricter guidelines being implemented in the U.S., there’s a growing anticipation for increased use of reliable stablecoins such as RLUSD. These digital assets provide genuine value and boast a solid foundation built on decades of experience and credibility within the industry.

Brad Garlinghouse, Ripple CEO

Stablecoins serve as an essential liquidity and transaction bridge between digital asset markets and traditional finance. They provide a stable-price blockchain asset leveraged for settlement in both web3-native and real-world contexts.

Financial institutions are increasingly turning to stablecoins for cost-effective cross-border transactions, spurred by a global move towards clearer regulations and standardized policies within the industry. Lawmakers in the U.S. Senate and Wyoming State House are considering the development of frameworks to govern stablecoins.

Although regulations for stablecoins in the U.S. could potentially favor RLUSD, it’s important to note that these tokens might not be accessible immediately, or possibly even for several months. The reason being, the startup is still working on obtaining the necessary licenses and approval from the European Union’s MiCA (Markets in Crypto-Assets) framework.

Debuting in the United States might see Ripple’s operator face off against dominant players in the $200 billion stablecoin market. Tether currently dominates with a market cap of $140 billion (USDT), and US Dollar Coin (USDC) issued by Circle already has a strong presence on American platforms such as Coinbase.

David Schwartz, Ripple’s Chief Technology Officer, warned investors about potential fluctuations in RLUSD prices due to demand-related causes. Schwartz mentioned that there could be supply deficits during the days immediately following the launch.

Schwartz advised against jumping on the bandwagon of investing in stablecoins, emphasizing that it’s not a chance to become wealthy. This caution was aimed at speculators who might be tempted to spend $1,200 for a portion of RLUSD’s supply, expecting profits.

The company added two new members to its Stablecoin Advisory Board: Raghuram Rajan, a former governor of the Reserve Bank of India, and Kenneth Montgomery, who used to serve as COO at Boston’s Federal Reserve Bank. They join previously appointed individuals such as Chris Larsen, co-founder of Ripple, and Sheila Bair, former chair of the FDIC.

The wait is over: RLUSD launches globally tomorrow!

— Ripple (@Ripple) December 16, 2024

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2024-12-16 20:43