Ripple has announced the public rollout of its US dollar-backed stablecoin, RLUSD, scheduled for Tuesday, December 17.
Initially available on both the XRP Ledger (XRP) and Ethereum networks, RLUSD aims to carve a space in the rapidly expanding stablecoin market, currently led by giants Tether (USDT) and Circle (USDC).
The launch marks a significant milestone for Ripple, following regulatory approval from the New York Department of Financial Services (NYDFS), a standard often regarded as the gold benchmark for digital asset regulation.
RLUSD: Backed for Stability and Designed for Growth
RLUSD will be fully backed by US dollar deposits, US government bonds, and cash equivalents, ensuring its value remains pegged to $1.
Ripple has positioned RLUSD as a key tool in bridging the gap between digital asset markets and traditional finance. Stablecoins serve as essential infrastructure for liquidity, cross-border transactions, and payment methods in the crypto ecosystem.
“As the US moves toward clearer regulations, we expect to see greater adoption of stablecoins like RLUSD”
Initially, RLUSD will be available through key crypto platforms and exchanges such as Uphold, MoonPay, Archax and CoinMENA, with additional listings on Bitso, Bitstamp, Bullish and Mercado Bitcoin expected in the coming weeks.
This widespread distribution aims to drive adoption across the Americas, Asia-Pacific, UK and the Middle East.
Ripple, however, does not currently have the necessary licensing under the EU’s MiCAR regulations to enter the European market, though the company is actively exploring opportunities to gain access in the near future.
High-Profile Support and Strategic Advisory Board
Ripple has strengthened its stablecoin strategy by bringing in notable financial leaders to its advisory board.
Recent appointments include Raghuram Rajan, former governor of the Reserve Bank of India, and Kenneth Montgomery, former first vice president of the Federal Reserve Bank of Boston.
They join earlier board members such as Sheila Bair, former chair of the FDIC, reflecting Ripple’s desire to align with regulatory expertise and traditional finance leadership.
RLUSD Volatility Concerns: Traders Warned
Despite RLUSD’s aim to maintain a stable $1 price, Ripple’s Chief Technology Officer David Schwartz issued a warning about potential volatility during the initial launch period.
He noted that limited supply and strong demand could cause price spikes, with some traders reportedly willing to pay up to $1,200 for a fraction of RLUSD.
Schwartz cautioned users against speculative behaviour, stating, “Please don’t FOMO into a stablecoin. This is not an opportunity to get rich.”
Ripple anticipates these early price imbalances to stabilise as supply increases and market adoption grows.
Competing in a Crowded Stablecoin Market
Ripple’s entry into the stablecoin market places RLUSD in direct competition with Tether’s $140 billion USDT and Circle’s $40 billion USDC – the dominant players in the sector.
The growing demand for stablecoins has attracted other major financial institutions, such as PayPal and Visa, which have entered the market with their own offerings.
Ripple’s competitive advantage lies in its established infrastructure within enterprise-focused blockchain services and its ability to leverage the XRP Ledger for fast, cost-effective transactions.
RLUSD is expected to become a critical tool for liquidity, payments, and cross-border transfers, driving adoption across Ripple’s global network.
While regulatory compliance and market trust remain key challenges, RLUSD’s fully-backed model and Ripple’s strategic partnerships provide a strong foundation for success in the evolving stablecoin market.
