Ripple launched RLUSD stablecoin, which is backed by the USD, as it aims to challenge the 90% market dominated by USDT and USDC.
Ripple, a crypto firm, has launched a new stablecoin, RLUSD, pegged to the US dollar. According to Reuters, the company’s objective is to disrupt a market in which the top two players hold nearly 90% of the value. The RLUSD launch is a significant milestone for Ripple, particularly in light of its groundbreaking victory over the Securities and Exchange Commission (SEC).
The RLUSD stablecoin will be available on various platforms worldwide, such as Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Ripple’s entry establishes the foundation for a difficult challenge in the market, which is concentrated and dominated by Tether and USD Coin (USDC), which collectively account for nearly 90% of the total market capitalization.
Stablecoins are digital tokens intended to preserve a consistent value and are backed by conventional currencies such as the US dollar or euro. Protecting users from the price fluctuations frequently observed in cryptocurrencies such as Bitcoin and Ether, they provide a stable medium for payments and the conversion of crypto tokens into traditional currencies.
Expert Governance Secured by RLUSD
The stability and reliability of each RLUSD token are guaranteed by the fact that it is 100% backed by US dollar deposits, US government bonds, and cash equivalents. Ripple underscores that this backing instills confidence in the value of RLUSD, rendering it a reliable choice for users worldwide.
Ripple has appointed Sheila Bair, the former chair of the US Federal Deposit Insurance Corporation (FDIC), to the advisory board of RLUSD in a strategic move to enhance its governance—Ripple’s new venture benefits significantly from Bair’s extensive experience in financial regulation.
Bair previously held the positions of assistant secretary for financial institutions at the US Treasury Department and chair of the board at the government-backed mortgage finance company Fannie Mae. Her participation is anticipated to provide RLUSD with guidance in navigating the intricate regulatory environment of the financial sector.
“Stablecoins will be instrumental in modernizing our financial infrastructure and expanding financial inclusion.” According to Bair, adopting digital assets will be contingent upon responsible innovation, prioritizing financial stability and consumer protection as the industry expands.
Ripple is poised to dominate the stablecoin market
USDC and USDT continue to dominate even though the stablecoin sector has expanded rapidly to a market capitalization of $172 billion since 2014. PayPal’s stablecoin, introduced in 2023, is also experiencing difficulty gaining traction.
Brad Garlinghouse, the CEO of Ripple, is confident that RLUSD can compete with the leading stablecoin giants despite its challenges. He asserted that Ripple’s stablecoin is on the brink of becoming the industry standard for enterprise-grade stablecoins due to its strong emphasis on regulatory compliance, evident utility and demand for RLUSD, and initial exchange partners.
“Our payment solutions will implement RLUSD, XRP, and other digital assets to facilitate cost-effective, dependable, and expedited cross-border transactions,” stated Garlinghouse.
