Ripple is gearing up to launch its own stablecoin, Real USD (RLUSD), backed 1:1 by USD and other cash equivalents. This move was announced by Ripple CEO Brad Garlinghouse during the XRP Ledger Apex meeting, where he emphasized his preference for calling it “Real USD… Ripple USD.”
With this development, Ripple is making a strategic entry into the $3 trillion stablecoin market, which is projected to see significant growth in the coming years. The integration of RLUSD with Ripple’s On-Demand Liquidity (ODL) platform and its support for multichain interoperability further solidify Ripple’s position in the market.
In a recent trademark filing on May 7, 2024, Ripple registered RLUSD for use in electronic financial services, particularly in monetary transactions and payments involving virtual currencies. Monthly attestations will ensure the transparency and reliability of RLUSD, which will be backed by US dollar deposits, short-term US government treasuries, and other currency equivalents.
Ripple’s strong compliance frameworks, including licenses from the Monetary Authority of Singapore and New York BitLicense, are crucial for gaining trust in the stablecoin market. RLUSD will not only be interoperable with the Ethereum blockchain and XRP Ledger but also seamlessly integrate with Ripple Payments, formerly known as ODL, enhancing its usability and cross-chain compatibility.
While opinions on the RLUSD ticker vary within the cryptocurrency community, Ripple remains confident that RLUSD will play a significant role in its ecosystem. Despite some suggesting alternative names like USDX or USDR, RLUSD was chosen due to the unavailability of these options. As Ripple continues to innovate and expand its offerings, RLUSD is expected to be a key player in the stablecoin market.