Ripple is preparing to launch its new US dollar-pegged stablecoin, Ripple USD (RLUSD), marking a significant milestone in the cryptocurrency space. The launch, anticipated for early December, has garnered considerable attention from investors, traders, and institutional players alike.
According to reports, the New York Department of Financial Services is expected to approve RLUSD ahead of its public release. Ripple has cautioned users to avoid unofficial tokens claiming to be associated with RLUSD until the company makes an official announcement.
Preview listings for RLUSD have already appeared on major cryptocurrency tracking platforms like CoinGecko and CoinMarketCap, signaling strong market interest.
RLUSD Features and Initial Launch
Introduced earlier this year, RLUSD is designed as a 1:1 US dollar-backed stablecoin. It is fully collateralized by US dollar deposits, short-term US government Treasurys, and other cash equivalents to ensure stability and trust.
The stablecoin will initially launch on two major blockchain networks: Ripple’s native XRP Ledger (XRPL) and the Ethereum mainnet. Ripple has also announced plans to expand RLUSD’s availability to other blockchains and decentralized finance (DeFi) protocols in the future.
Since August, RLUSD has been in beta testing on both XRPL and Ethereum, allowing developers and early users to familiarize themselves with its functionality.
How RLUSD and XRP Will Work Together
Ripple has emphasized that RLUSD and XRP are designed to complement each other rather than compete. The company plans to integrate both digital assets into its cross-border payment solutions to better serve its global customer base.
Ripple President Monica Long previously stated that RLUSD was built to be “complementary and additive” to XRP. The two assets are expected to be paired on trading platforms, which could enhance liquidity for both.
XRP’s widespread exchange presence is likely to support RLUSD’s liquidity, while the stablecoin pairing may help stabilize XRP’s price during periods of high volatility.
Target Audience and Institutional Focus
RLUSD is strategically aimed at large institutional players rather than retail users. Ripple CEO Brad Garlinghouse highlighted the company’s intent to target institutions with a strong emphasis on regulatory compliance.
He noted that Ripple has already been using stablecoins like Circle’s USDC in its payment flows, minting a significant portion of its supply. However, following USDC’s temporary depegging event in early 2023, Ripple saw an opportunity to introduce a more reliable alternative.
Despite this institutional focus, some self-custody wallet users have reported early access to RLUSD functionalities. For instance, Xaman wallet users can already set up Trustlines in preparation for the stablecoin’s issuance.
It’s important to note that setting up a Trustline does not confirm the availability or issuance of RLUSD but rather prepares the wallet to receive the asset once it is officially launched.
Frequently Asked Questions
What is RLUSD?
RLUSD is Ripple’s new US dollar-pegged stablecoin, fully backed by cash and cash-equivalent reserves. It aims to facilitate fast and low-cost transactions, particularly in cross-border payments and DeFi applications.
When will RLUSD be launched?
RLUSD is expected to launch in early December, following regulatory approval from the New York Department of Financial Services. Users should rely only on official Ripple announcements for confirmation.
How can I acquire RLUSD?
Once launched, RLUSD will be available on supported exchanges and DeFi platforms. Users can also store it in compatible wallets like Xaman by setting up a Trustline in advance. 👉 Explore wallet setup guides
Will RLUSD replace XRP?
No, RLUSD is not intended to replace XRP. Instead, the two assets are designed to work together, with XRP providing liquidity and RLUSD offering price stability within Ripple’s ecosystem.
Is RLUSD available on Ethereum?
Yes, RLUSD will be launched on both the XRP Ledger and the Ethereum blockchain. Ripple plans to expand to additional networks over time.
Who is the target audience for RLUSD?
While accessible to all users, RLUSD is primarily geared toward institutional participants, focusing on compliance, scalability, and integration within enterprise-grade financial solutions. 👉 Learn more about institutional crypto use