The US dollar-backed stablecoin was recently approved by the NYDFS
Ripple is launching its new US dollar-backed stablecoin, RLUSD, today. The news followed approval earlier this month from the New York State Department of Financial Services.
Initially, RLUSD will be available on select global exchanges and issued on both the Ethereum blockchain and XRP Ledger, with plans for wider availability in the near future. However, the stablecoin will not yet be accessible on platforms like Coinbase or Robinhood.
The move to launch RLUSD aligns with Ripple’s growing focus on cross-border payments. According to Ripple’s SVP of Stablecoins, Jack McDonald, the increasing use of stablecoins in their payment flows prompted the company to develop its own.
Ripple aims to offer a cost-effective and efficient stablecoin solution to complement its existing payment services for banks and financial institutions, particularly outside the US, where much of its business takes place.
Stablecoins have become a dominant part of the crypto market, growing significantly this year. Tether (USDT) leads with around 70% market share, followed by Circle’s USDC. Ripple sees an opportunity to introduce an alternative amid concerns about market concentration. Feedback from institutions has suggested a desire for more options in the stablecoin sector.
The launch of RLUSD comes during heightened optimism for clearer regulations in the US, especially with potential shifts under a new presidential administration. Ripple has dealt with its share of regulatory challenges, including its ongoing legal battle with the SEC. Despite this, the company remains confident about RLUSD’s potential to complement XRP, its native token used primarily for cross-border transactions.
Ripple’s decision to launch RLUSD on Ethereum and the XRP Ledger could also increase demand for XRP as a bridge asset on its decentralized exchange. By expanding into the stablecoin space, Ripple aims to strengthen its role in payments while offering an alternative in a growing market.
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