June 13, 2024 at 15:33 GMTModified date: June 13, 2024 at 15:34 GMT
June 13, 2024 at 15:33 GMT

Ripple touts new stablecoin as ‘Real USD’ for the digital age

RLUSD will be a 1:1 USD-backed stablecoin, offering “transparency and stability on the XRP Ledger and Ethereum”.

Ripple touts new stablecoin as ‘Real USD’ for the digital age

American technology company, Ripple Labs, has announced its upcoming stablecoin, RLUSD (Real USD), advertised as the ‘real USD’ for the digital age.

Known for the cryptocurrency $XRP, the blockchain payments company, revealed the recent news during the XRP Ledger Apex summit, hosted in Amsterdam this year.

Ripple CEO, Brad Garlinghouse, shared the ticker symbol and added, “I like to call it Real USD… Ripple USD”.

The official announcement via an X post confirmed that the 1:1 USD-backed stablecoin would offer “transparency and stability on the XRP Ledger and Ethereum”.

However, the launch date for RLUSD remains unspecified. Nevertheless, the stablecoin is scheduled for release later this year as RLUSD is part of Ripple’s broader expansion strategy.

It aims to stabilise transactions within the XRP Ledger (XRPL) and will be accessible on both XRPL and Ethereum, promising broader utility across various blockchains.

Reports indicate that RLUSD will enter the $150 billion market, backed by assets like US dollars, US government bonds, and cash equivalents.

Despite regulatory hurdles, including a claim from the US Securities and Exchange Commission (SEC) that RLUSD is an unregistered crypto asset, Ripple’s Middle East and Africa Managing Director, Reece Merrick, confirmed the stablecoin’s launch.

A new sidechain

Ripple Labs has also announced the XRPL EVM Sidechain, a new solution aimed at enhancing blockchain interoperability by linking the XRP Ledger (XRPL) with the Ethereum Virtual Machine (EVM). 

This initiative is expected to open new opportunities for developers in real-world asset tokenisation and decentralised finance (DeFi).

The XRPL EVM Sidechain Bridge will facilitate this integration, using wrapped XRP (eXRP) as both the native asset and gas token. The bridge will ensure seamless asset transfers between XRPL and the EVM sidechain, prioritising user and developer experience and security.

The exclusive use of the Axelar bridge, a decentralised bridge operated by validators, will be critical in this process.

Peersyst CEO, Ferran Prat, highlighted the reliability of the Axelar bridge, describing it as “battle-tested, production-ready, and fully compatible” to introduce eXRP as the native currency to the XRPL EVM sidechain. 

In light of these recent developments, $XRP’s price has risen by 2.11% in the past 24 hours, reflecting increased investor confidence in Ripple’s technological advancements.

An important date for XRP holders

Recently, Garlinghouse indicated that the company is nearing the conclusion of its prolonged legal battle with the SEC.

The CEO speculated that the resolution might come by 21 September, humorously referring to it as “the end of summer”. However, he acknowledged that the final decision rests with the judge.

Talking about the same, Garlinghouse emphasised XRP’s regulatory clarity in the US, contrasting it with the uncertain status of other cryptocurrencies like $ETH. He also criticised SEC Chair, Gary Gensler, for being “pretty hostile” towards crypto. 

Ripple CTO, David Schwartz, noted that while the US market is important, regulatory challenges are more manageable globally, and business outside the US is thriving.

Currently, Ripple is engaged in a dispute with the SEC over fines and penalties. On 14 May, Ripple filed a motion to seal certain documents related to the SEC’s motion for judgement and remedies. 

Despite these challenges, Ripple continues to make strategic moves, such as acquiring Standard Custody & Trust Co, which is a limited purpose trust charter that will help the crypto company expand its US regulatory licensing. 

This was the second major acquisition by Ripple in the last year, following the acquisition of Metaco in May 2023, which is a leading provider of institutional digital asset custody solutions. 

Announcing the same, Ripple also revealed the appointment of Jack McDonald as Senior Vice President of Stablecoins, while he maintains his current role as CEO of Standard Custody.