Ripple has announced the launch of its USD-denominated stablecoin, RLUSD, scheduled for release on December 17, 2024. The announcement comes with a strong emphasis on regulatory compliance and market stability from key Ripple executives. Ripple President Monica Long emphasized the stablecoin’s credibility, highlighting the company’s decade-long industry experience and compliance with New York Department of Financial Services (NYDFS) requirements.
The launch includes support from an experienced advisory board and multiple partnership arrangements, positioning RLUSD for immediate utility in the market. The stablecoin’s initial rollout will include availability on several major exchanges, including Uphold, Bitso, MoonPay, Archax, and CoinMENA. In the upcoming weeks, listings will be available on platforms like Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash.
Addressing potential market volatility, Ripple CTO David Schwartz warned about possible early supply shortages and price volatility. He noted an unusual situation where some traders were willing to pay up to $1,200 per RLUSD for minimal amounts, likely seeking the distinction of being early adopters. However, Schwartz strongly stated that such price premiums would be temporary, cautioning against FOMO-driven trading.
The Blockchain Bulletin, Dec 17: Justin Sun’s 53K ETH Purchase Sparks Hope“Please don’t FOMO into a stablecoin!” Schwartz warned, stressing that arbitrage activities would quickly normalize the price to its intended $1 peg. He explained that while short-term price fluctuations might occur during the launch phase, they should not persist as market mechanisms stabilize the price.
The stablecoin’s backing structure includes U.S. dollar deposits, U.S. government bonds, and cash equivalents, designed to maintain stability and ensure liquidity. Ripple has committed to transparency through monthly third-party attestations of reserve assets conducted by an independent auditing firm.
Raghuram Rajan, former Governor of the Reserve Bank of India, will join the RLUSD advisory board to guide on the aspects of regulation, finance and operations. In a recent press release, Rajan stated that RLUSD “aims to establish new standards for trust and to play a pivotal role in shaping the future of payments.”
This launch represents a major expansion of Ripple’s financial infrastructure, combining traditional finance compliance with blockchain technology. Further, focusing on stability and market behavior, Ripple indicates that RLUSD should be differentiated from more speculative cryptocurrency assets.
