Ripple Introduces RLUSD: A Fully-Backed Stablecoin to Revolutionize Cross-Border Payments

18. Dec 2024 Posted by Laurent C. on News

On December 17, Ripple, a leader in blockchain-powered payment solutions, unveiled its highly anticipated US dollar-pegged stablecoin, Ripple USD (RLUSD). The launch follows regulatory approval from the New York Department of Financial Services (NYDFS), marking a significant milestone for the company.

RLUSD: A Fully-Backed Digital Dollar

Ripple USD (RLUSD) is a 1:1 USD-backed stablecoin, fully collateralized by US dollar deposits, short-term US Treasury securities, and other cash equivalents. Designed to ensure price stability, RLUSD is particularly suited for global transactions where volatility can disrupt cross-border payments.

Initially, RLUSD will operate on Ripple's XRP Ledger (XRPL) and the Ethereum blockchain. However, Ripple plans to extend its stablecoin's compatibility to other blockchains and decentralized finance (DeFi) platforms to enhance accessibility and adoption.

Building Momentum Since June 2024

First introduced in June 2024, RLUSD underwent beta testing starting in August. Early glimpses of the stablecoin appeared on platforms like CoinGecko and CoinMarketCap ahead of its official debut. In October, Ripple solidified partnerships with prominent exchanges, including Uphold, Bitstamp, Bitso, MoonPay, and CoinMENA, to support RLUSD's global distribution.

Redefining Cross-Border Transactions

Ripple positions RLUSD as a transformative tool for real-time international payments. The stablecoin’s seamless on/off-ramp functionality simplifies conversions between fiat currencies and RLUSD, addressing a key pain point in cross-border trade.

To maintain trust and regulatory compliance, Ripple has implemented robust measures, including:

  • An advisory board featuring financial industry veterans like Sheila Bair, former FDIC Chairman.
  • Monthly, third-party audits of reserve assets for increased transparency.
  • Strategic partnerships with liquidity providers B2C2 and Keyrock.

Complementary Role with XRP

Ripple envisions RLUSD and its native token, XRP, as complementary assets in its ecosystem. While RLUSD offers stability for institutional clients, XRP contributes to the stablecoin's liquidity, creating a balanced approach for cross-border payment solutions.

Future Expansion

Ripple’s long-term vision includes expanding RLUSD’s reach across additional blockchains and DeFi protocols. By fostering greater interoperability, Ripple aims to cement RLUSD’s role as a stable, reliable medium for international financial transactions.

With RLUSD now live, Ripple continues to position itself as a pioneer in blockchain technology and digital payments, setting the stage for further innovations in 2025 and beyond.