In a significant move at the ongoing XRP Ledger Apex summit, Ripple CEO Brad Garlinghouse announced the company’s foray into the stablecoin market with Ripple USD, trading symbol RLUSD. Garlinghouse humorously referred to RLUSD as the “Real USD” while noting its origin from “Ripple USD.” The firm’s Chief Technology Officer David Schwartz was also present at the session.
Following Garlinghouse’s revelation, Ripple confirmed RLUSD through its official website and social media accounts, solidifying the new term in the cryptocurrency lexicon. This announcement comes a month after the company’s trademark application for RLUSD with the U.S. legal database registry, Justia. The application, detailing RLUSD’s role in electronic financial services for managing virtual currency payments and transfers, had fueled speculation within the community about the firm’s next steps.
The community’s anticipation was met with mixed reactions. Many had speculated and hoped for alternative names like USDX or USDR. However, The firm faced constraints as Flare Networks had already claimed USDX, and ‘USDR’ was taken by another stablecoin issuer. Despite this, the community now has official confirmation of RLUSD as the firm’s stablecoin.
Ripple Officially Introduces RLUSD
The introduction of RLUSD marks a strategic pivot for the firm as it aims to carve out a niche in the rapidly expanding stablecoin market, projected to reach a valuation of nearly $3 trillion in the next four years. RLUSD is designed to be a 1:1 USD-backed stablecoin, providing a reliable and transparent option for users.
Significantly, RLUSD is not yet live. The firm has planned its launch on both the XRP Ledger and Ethereum by the end of 2024. This dual-network approach indicates Ripple’s commitment to interoperability and maximizing RLUSD’s market reach.
As Ripple embarks on this new chapter, it reinforces its mission to foster innovation and stability in the cryptocurrency market. The move also highlights the firm’s adaptability and foresight in navigating regulatory landscapes and market demands.