TL;DR
- Ripple will launch a new stablecoin called Ripple USD (RLUSD), pegged to the US dollar and issued on XRP Ledger and Ethereum.
- RLUSD promises high liquidity, instant settlements, and programmable finance capabilities.
- The SEC has labeled RLUSD as an “unregistered crypto asset.”
Ripple Labs continues working on its expansion strategy, having announced the launch of a new stablecoin called Ripple USD (RLUSD), which will be pegged to the US dollar. The announcement of this new product comes amid the prolonged legal battle with the United States Securities and Exchange Commission (SEC), which has kept the company at the center of controversy.
RLUSD is designed to maintain a constant value of one US dollar, backed by a segregated reserve of cash and cash equivalents. Additionally, it will be issued on both the XRP Ledger platform and the Ethereum blockchain, representing a strong move by Ripple to integrate its asset into major blockchain infrastructures. The company assures that RLUSD will provide significant advantages, including high liquidity for certain trading pairs on centralized exchanges, instant settlements, and programmable finance capabilities.
Ripple is redoubling its efforts to position itself as a bridge between traditional finance and the crypto ecosystem. The company’s CEO, Brad Garlinghouse, stated that RLUSD will be key in facilitating on-chain transactions and payments, offering a stable alternative in a market characterized by its volatility.
The SEC Strikes Against Ripple’s Stablecoin
The exact launch date has not yet been confirmed, although the recent inclusion of the product on the company’s official website suggests that it could be imminent, provided it meets regulatory requirements.
The SEC, which has been in conflict with the company since 2020, has expressed its concern about RLUSD, labeling it an “unregistered crypto asset.”
With the potential launch of RLUSD on the horizon, Ripple hopes that its new asset will play a fundamental role in shaping the future of digital transactions and stability in the crypto industry. However, regulatory approval and the outcome of its dispute with the SEC will be determining factors for the success of this new initiative.
