Ripple’s RLUSD Stablecoin: A Comprehensive Guide to the Stablecoin

Ripple intends to incorporate both XRP and RLUSD into its cross-border payments system once RLUSD becomes accessible.

Ripple is getting ready to introduce Ripple USD (RLUSD), a stablecoin pegged to the US dollar. The debut, which is anticipated on December 4, is eagerly awaited by the cryptocurrency community.

After receiving certification from the New York Department of Financial Services, Ripple is anticipated to launch RLUSD on December 4, according to Fox Business.

The blockchain company has advised against purchasing coins that purport to be Ripple USD or RLUSD until the launch has been confirmed by an official announcement.

CoinGecko and CoinMarketCap, two of the biggest cryptocurrency data providers, have already shown preview listings for RLUSD.

Initial launch of RLUSD on Ripple’s XRPL and Ethereum

The RLUSD stablecoin, which debuted in June, is pegged one-to-one with US dollars and is fully guaranteed by US deposits, short-term US Treasurys, and other cash equivalents.

The RLUSD stablecoin has been participating in the Ethereum mainnet and Ripple’s XRP Ledger (XRPL) beta testing since the beginning of August. Ripple has stated its intention to eventually extend RLUSD to more blockchains and decentralized finance (DeFi) protocols.

Ripple Labs-linked XRP (XRP) has been surging in recent weeks, reclaiming its position as the third-largest coin by market size in early December, even though RLUSD has not yet launched.

They will “complement each other”—RLUSD and XRP

According to Ripple’s announcement regarding RLUSD’s beta testing, the business intends to utilize both RLUSD and XRP in its cross-border payments solution in order to cater to its worldwide clientele.

Ripple president Monica Long stated in June that RLUSD was designed to work in tandem with XRP, calling it a “complementary and additive” feature.

As RLUSD and XRP will be paired together, Ripple reportedly considers RLUSD to be “beneficial” for XRP.

The stablecoin’s price will be stabilized through pairing to prevent depegging, and XRP’s large availability on exchanges will add liquidity to RLUSD.

Large institutional players will be the primary emphasis of RLUSD

Ripple Labs CEO Brad Garlinghouse has stated that RLUSD will place a greater emphasis on major institutional investors.

“We think there’s an opportunity for another player in the stablecoin market to exist that focuses on institutions, focuses on compliance,” Garlinghouse said in a chat recorded with Token Relations co-founder Jacquelyn Melinek in September 2024.

By minting 20% of Circle’s USD Coin, Ripple has already implemented stablecoins into its payment processes, he added.

“We felt there was an opportunity for a credible player that is already working with lots of financial institutions to lean into that market,” Garlinghouse noted, referring to the significant event that occurred 18 months ago in the US spring when USDC depegged.

Even though Garlinghouse said that institutions will be RLUSD’s primary target, on December 4th, several users said they were able to add the stablecoin to the Xaman self-custodial XRP wallet.

The RLUSD stablecoin has not been released by Ripple just yet, but Xaman users can start preparing for its release by creating Trustlines, according to Xaman COO Robert Kiuru, who spoke with Cointelegraph.

“While trustlines are easy to set up and could be created for any asset in theory, they don’t give any information regarding the availability or issuance of RLUSD,” he noted.