Blockchain-based payment service provider, Ripple, has introduced its first US dollar-pegged stablecoin, Ripple USD (RLUSD).
The launch, on 17 December, marks a major step for Ripple in entering the US regulated market.
The stablecoin received approval from the New York Department of Financial Services (NYDFS) before its release.
RLUSD is fully backed by US dollar reserves, short-term US government bonds, and other cash equivalents, ensuring its value stays tied to the US dollar at a 1:1 ratio. Currently, RLUSD operates on Ripple’s XRP Ledger (XRPL) and the Ethereum blockchain.
Ripple has plans to expand its availability to other blockchains and decentralised finance (DeFi) platforms in the future.
Ripple CEO Brad Garlinghouse shared the news on X, formerly Twitter. He said this launch is a part of Ripple’s broader goal to make digital assets more accessible and useful in everyday finance.
Following the announcement, Ripple’s native cryptocurrency, XRP ($XRP), saw a 13% price increase, reaching $2.62 according to CoinGecko. This added to XRP’s impressive year-to-date (YTD) growth of 322%.
RLUSD and its regulatory significance
RLUSD is one of the first stablecoins to be launched under US regulatory guidelines, making it a unique entry in the digital asset market.
Ripple chose to launch it under the NYDFS’s limited purpose trust company charter, which is considered one of the highest regulatory standards.
Garlinghouse explained Ripple’s decision: “Launching under strict regulatory frameworks was a deliberate choice. We believe clearer regulations will help stablecoins like RLUSD gain wider adoption because they offer real utility and are built on trust and experience”.
Stablecoins are digital currencies designed to maintain a steady value by being linked to stable assets like fiat currencies. RLUSD’s design ensures that it is fully backed by reserves and redeemable at any time.
This makes it well-suited for cross-border payments, liquidity support, and integration into DeFi systems.
George Georgiades, General Counsel at Borderless.xyz, commended the launch: “RLUSD is a textbook example of what payment stablecoins should be—fully backed, redeemable, and regulated. This launch will work alongside XRP to reshape global payments.”
Ripple is entering a competitive market with RLUSD. Leading players like Tether’s $USDT dominate the space with a market cap of $140 billion. Circle’s $USDC, which focuses on regulatory compliance, holds a market cap of $42 billion.
However, Ripple has an advantage—its own blockchain infrastructure. Unlike Circle, which relies on external blockchains, Ripple’s integrated system may provide a stronger value proposition for businesses and developers.
RLUSD will initially be available on several major exchanges, including Uphold, MoonPay, CoinMENA, Bitso, and ArchaxEX, with more platforms expected to follow.
The stablecoin’s primary uses include settling cross-border payments instantly, providing liquidity for remittances and treasury operations, and offering compatibility with DeFi protocols.
Ripple also highlighted RLUSD’s potential to bring transparency and efficiency to global payment systems.
Early demand
Ripple CTO, David Schwartz, explained that RLUSD is not designed to be a profit-making investment but a tool for financial stability. “Stablecoins are meant to hold their value and not deliver returns. Don’t treat them as an investment”, he said.
Schwartz noted that demand for RLUSD could exceed its supply during the early rollout. In one case, a user reportedly offered $1,200 for a small amount of RLUSD on a decentralised exchange. He clarified that these inflated prices are temporary and are likely due to excitement around the launch.
“As the market adjusts, RLUSD’s price will stabilise near its intended value of $1”, Schwartz said. He also assured that mechanisms like arbitrage would quickly correct any short-term price fluctuations.
Ripple’s move into the stablecoin space has drawn attention from experts. Former SWIFT executive, Andre Casterman, described RLUSD as a “game changer” for global payments. He believes that small and medium-sized businesses will benefit the most.
“Corporates and SMEs will see immediate value, especially with faster settlements and improved working capital”, he said.
Ripple’s regulatory focus has also been emphasised by Jack McDonald, a key company executive, who highlighted that RLUSD is one of the few stablecoins fully compliant with US regulations. The coin has already been listed as an approved digital asset by the NYDFS.
As RLUSD gains traction, it could challenge established players like $USDT and $USDC while paving the way for broader adoption of digital assets in mainstream finance.
