Ripple CEO Brad Garlinghouse believes RLUSD stablecoin is poised to become the gold standard for enterprise-grade stablecoins.
Crypto firm Ripple has introduced a new stablecoin pegged to the US dollar, named RLUSD, aiming to disrupt a market where the top two players control nearly 90% of the value, according to Reuters. The RLUSD launch marks a significant milestone for Ripple, especially after its landmark victory against the Securities and Exchange Commission (SEC).
The RLUSD stablecoin will be accessible globally on various platforms, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Ripple’s entry sets the stage for a challenging endeavor to compete in a concentrated market dominated by Tether and USD Coin (USDC), which together hold nearly 90% of the total market capitalization.
Stablecoins are digital tokens designed to maintain a constant value, backed by traditional currencies like the US dollar or euro. They offer a stable medium for payments and converting crypto tokens into traditional currencies, protecting users from the price fluctuations commonly seen in cryptocurrencies like Bitcoin and Ether.
RLUSD Secures Expert Governance
Each RLUSD token is 100% backed by US dollar deposits, US government bonds, and cash equivalents, ensuring its stability and reliability. Ripple emphasizes that this backing provides confidence in RLUSD’s value, making it a trustworthy option for users worldwide.
In a strategic move to strengthen its governance, Ripple has appointed Sheila Bair, former chair of the US Federal Deposit Insurance Corporation (FDIC), to the advisory board of RLUSD. Bair’s extensive experience in financial regulation brings significant expertise to Ripple’s new venture.
Previously, Bair also served as the chair of the board at the government-backed mortgage finance company Fannie Mae and as the assistant secretary for financial institutions at the US Treasury Department. Her involvement is expected to guide RLUSD through the financial industry’s complex regulatory landscape.
“Stablecoins will play a key role in modernizing our finance infrastructure and broadening financial inclusion. As the digital assets industry grows, responsible innovation will be paramount to their adoption, prioritizing both consumer protection and financial stability,” said Bair.
Ripple Poised to Lead Stablecoin Market
Since 2014, the stablecoin sector has rapidly expanded to a market capitalization of $172 billion, yet USDC and USDT continue to dominate. Even PayPal, which introduced its stablecoin in 2023, is struggling to gain traction.
Despite these challenges, Ripple CEO Brad Garlinghouse believes RLUSD can compete with the leading stablecoin giants. He stated that with initial exchange partners, evident utility and demand for RLUSD, and a strong focus on regulatory compliance, Ripple’s stablecoin is poised to become the gold standard for enterprise-grade stablecoins.
“Our payment solutions will leverage RLUSD, XRP, and other digital assets to enable faster, more reliable, and cost-effective cross-border payments,” said Garlinghouse.
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