- Ripple has officially announced its own stablecoin to compete in the booming cryptocurrency market.
- The stablecoin is expected to bring stability to XRP transactions and bridge the gap between TradFi and crypto.
- In addition to RLUSD, Ripple has announced the development of an EVM sidechain for the XRP Ledger.
In a move that signals Ripple’s expansion in the cryptocurrency space, the company announced the upcoming launch of its very own stablecoin, RLUSD (Real USD or Ripple USD), during the XRP Ledger Community Summit (XRPL Apex) in Amsterdam.
Ripple Officially Announces RLUSD
Ripple CEO Brad Garlinghouse unveiled the ticker symbol and spoke about the stablecoin’s name, stating, “I like to call it Real USD or Ripple USD.” While a launch date remains unspecified, the announcement aligns with Ripple’s broader plans to become a major player in the crypto industry.
Shortly after Garlinghouse’s statement, Ripple officially confirmed the launch of RLUSD, a 1:1 USD-backed stablecoin, via an official announcement. According to the announcement, RLUSD will offer “transparency and stability on the XRP Ledger and Ethereum,” catering to a wider user base with its presence on both prominent blockchains.
Reports suggest that the introduction of RLUSD is aimed at stabilizing transactions within the XRP Ledger (XRPL). This strategically positions RLUSD to bridge the gap between traditional finance and the digital currency ecosystem, as hinted at by Ripple’s Middle East and Africa Managing Director, Reece Merrick, earlier this week.
News of the stablecoin first emerged in April, with Ripple hinting at its entry into the $150 billion stablecoin market. Reports at the time indicated that RLUSD would be backed by an equivalent sum of assets such as US dollars, US government bonds, and cash equivalents.
XRP Ledger Gets EVM Sidechain
The announcement of RLUSD was accompanied by the unveiling of the XRPL EVM Sidechain by RippleX, Ripple’s development arm. The XRPL EVM Sidechain aims to bring Ethereum Virtual Machine (EVM) compatibility to the XRP Ledger. This interoperability opens doors for entirely new applications in the world of decentralized finance (DeFi) and asset tokenization.
The XRPL EVM Sidechain enables developers familiar with the Ethereum ecosystem to build on the XRP Ledger, potentially unlocking a new wave of innovation within the Ripple network. The launch of RLUSD and the XRPL EVM Sidechain together show Ripple’s effort to grow its user base and make the XRP ecosystem more appealing.
On the Flipside
- The SEC is currently suing Ripple over XRP, alleging it’s an unregistered security. This legal battle could delay or impact the launch and adoption of RLUSD.
- Details on RLUSD’s functionalities beyond basic transactions are still unclear.
Why This Matters
Ripple’s entrance into the stablecoin market with RLUSD, alongside the introduction of the XRPL EVM Sidechain, signifies a major push to position the XRP Ledger as a key player in DeFi and bridge the gap between traditional finance and crypto, potentially attracting a wider range of users and developers to the Ripple ecosystem.
Sponsored
If you’re interested in the price of XRP, you’ll probably want to read this article about the ongoing lawsuit between Ripple and the SEC:
Ex-Ripple Director Explains Why XRP Has Slid Amid Good News
To learn more about Ripple’s shift from the US to Asia amid regulatory challenges. Read this article here:
Ripple Ramps XRP up as Payment Leader with $640M Asia Gambit
