Ripple USD Stablecoin Nears Release: Key Details and Launch Timeline

sevval04/09/20241 Mins read287

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.

Table of Contents

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.

FAQs

What is Ripple USD?

Ripple USD is a new stablecoin being developed by Ripple Labs, pegged to the U.S. dollar. It aims to provide a stable digital asset backed 100% by U.S. dollar deposits, short-term U.S. government Treasuries, and other cash equivalents.

When is Ripple USD expected to launch?

Ripple Labs CEO Brad Garlinghouse has stated that Ripple USD is close to issuance and will be launched in “weeks, not months.” The stablecoin is expected to be available soon after extensive testing with enterprise partners.

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sevval

Şevval has been actively writing since 2022 and is a third-year mathematics student at Ankara University. Her interest in writing is shaped particularly around innovative technologies such as Web3, artificial intelligence, and blockchain. She closely follows developments in these fields and aims to convey complex topics to readers in a clear and engaging manner. She enjoys combining her mathematical knowledge with technology to create content and strives to raise awareness about the digital world of the future.