Ripple USD Stablecoin Nears Release: Key Details and Launch Timeline

Ripple USD Stablecoin Launch: Insights from Korea Blockchain Week

Ripple USD Stablecoin– Ripple Labs, under the leadership of CEO Brad Garlinghouse, is on the brink of launching a U.S.-dollar pegged stablecoin, Ripple USD (RLUSD). Speaking at the ongoing Korea Blockchain Week, Garlinghouse confirmed that the stablecoin’s issuance is imminent, stating, We will certainly launch soon. Weeks, not months.

Why Ripple Is Entering the Stablecoin Market

The decision to introduce Ripple USD comes in the wake of USD Coin (USDC) losing its dollar peg in March 2023. With a market capitalization of $34 billion, USDC is the second-largest stablecoin. This incident highlighted a potential opportunity for a stable and reliable player in the market. We felt like there was an opportunity for a credible player already working with lots of financial institutions to lean into that market, Garlinghouse explained.

Ripple announced its stablecoin plans in April, emphasizing that Ripple USD would be 100% backed by U.S. dollar deposits, short-term U.S. government Treasuries, and other cash equivalents. This strong backing aims to instill confidence in the stability and reliability of Ripple USD, setting it apart from other stablecoins.

The Technical Backbone: XRP Ledger and Ethereum Blockchain

Ripple’s new stablecoin will initially be deployed on both Ripple’s XRP Ledger, which is designed for institutional use, and the Ethereum blockchain. Notably, Ripple USD will adhere to Ethereum’s ERC-20 token standard, making it versatile and accessible within the broader Ethereum ecosystem.

The development of Ripple USD is part of a larger effort to enhance the XRP Ledger network, which now includes Ethereum-compatible smart contracts. These smart contracts will enable users to build decentralized applications, create on-chain exchanges, and issue tokens, similar to what is currently possible on Ethereum.

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