RLUSD Stablecoin: Latest Updates and Insights
Ripple Labs' President Monica Long recently announced the upcoming launch of their new US dollar-backed stablecoin, RLUSD. We've gathered all the available details about RLUSD.
Timeline
The crypto community first heard of the new stablecoin on May 7, 2024, when Ripple filed for the RLUSD trademark in the US Justia legal database. The application indicated the product would offer "electronic financial services, namely, monetary services for receiving and disbursing payments and gifts in virtual and digital currency and digital tokens of value determined by fiat currency over a computer network."
This announcement sparked discussions about the potential launch of a new stablecoin.
On June 12, during the XRP Ledger community summit in Amsterdam, Ripple's CEO Brad Garlinghouse announced that the infrastructure for the token was nearly ready and that RLUSD could stand for Real USD or Ripple USD.
On June 15, the payment operator Uphold, Ripple's ODL partner in the USA, stated it would soon delist several dollar-backed stablecoins, including Tether (USDT), Tru USD (TUSD), and Dai (DAI). This was announced by Antony Welfare, CBDC strategic advisor at Ripple Labs, which fueled speculation that Uphold was making room for RLUSD by removing competitors.
On June 18, scammers reportedly released a counterfeit version of RLUSD, leading to significant XRP accumulation through trading the fake token. XRPScan officials cautioned the community against these fraudulent activities.
Wietse Wind, a lead developer at Ripple Labs, noted that some people were mistakenly convinced that RLUSD was already operational on the XRP blockchain. He advised caution against buying the counterfeit version, which had started trading on the DEX.
After this incident, it became clear that the RLUSD ticker was not yet unique, making it easy for criminals to exploit user trust. Ripple's team has urged the public to wait for official information about the launch, although no preliminary date has been provided yet.
Official Insights on the RLUSD Token
In an interview with The Block on June 25, Monica Long detailed the imminent launch of their new US dollar-backed stablecoin, RLUSD. She emphasized the critical need for the stablecoin as many businesses using XRP for international payments wish to see their transactions reflected in US dollar terms. This highlights the demand for a liquid stablecoin since clients often need to convert the received funds into fiat currency.
Long highlighted that Ripple Labs considers XRP and RLUSD as complementary assets, each offering unique advantages:
- XRP excels in efficient cross-currency transactions, particularly valuable in regions with limited banking services, where fees for traditional transfers can be as high as 10%.
- RLUSD, being pegged to the US dollar, provides an ideal solution for clients of Ripple Payments who prefer the stability of the US currency for their settlements.
She also pointed out that RLUSD would simplify operations for developers in the DeFi ecosystem, being crucial for creating products that involve trading pairs such as lending, borrowing, and exchanging.
Concerning the potential launch date, Long hinted that it is scheduled for sometime in 2024.
Brad Garlinghouse and his team might be awaiting the full enforcement of the MiCA regulations. According to these rules, only licensed electronic money issuers are allowed to launch stablecoins. While the MiCA framework specifically targets European companies, clients using cross-border payments involving European banks might face limitations.
Moreover, the ongoing legal disputes between Ripple and the SEC are also slowing Ripple's product advancements in international markets. It is unlikely that European regulators would want to conflict with the U.S. Securities and Exchange Commission by issuing licenses to a controversial stablecoin issuer. Thus, the release timeline for RLUSD could be influenced by the outcomes of these legal issues.
