Ripple CTO Weighs in on Speculations on RLUSD Stablecoin

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Ripple’s United States dollar-pegged stablecoin RLUSD is expected to launch in a few weeks. As the day draws closer, speculations begin to arise amongst investors and crypto enthusiasts. There is a particular concern about the accessibility of the stablecoin. Though there were no specifics, Ripple CTO David Schwartz gave a clue on what to expect. 

Noteworthy, this stablecoin could serve as Ripple’s means of tackling the difficulties faced by small and medium enterprises (SMEs) globally with cross-border payments.

Ripple CTO Suggest Only Institutional Access to RLUSD

In his X post, Schwartz suggested that the crypto will likely be accessible only to institutions. He indicated this is the existing culture with other top stablecoins, citing Tether’s USDT and Circle’s USDC. The Ripple executive noted that he has never been able to get these stablecoins directly from their issuers but from third-party institutions.

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Schwartz’s statement responded to an X user who asked if the RLUSD stablecoin would only be accessible to institutions or crypto retailers. 

Safeguarding RLUSD Against Money Laundering Risks

In this user’s opinion, restricting RLUSD to institutional access could protect the stablecoins from certain risks. Some existing stablecoins, like USDT, are already faced with these risks.

They have been criticized for alleged connections to money laundering and concerns about their stability. Ripple CTO addressed the concerns about potential manipulation of the USD-pegged stablecoin, stating, “I don’t think that’s likely to happen except maybe in very early test phases before anyone is using it to move or store value.” 

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RLUSD in Private Beta on XRPL And Ethereum 

In the meantime, RLUSD is in its private beta testing phase on XRP Ledger and Ethereum mainnet. Over a week ago, Ripple moved further in its stablecoin initiative by burning 185 RLUSD tokens from circulation. The tokens were effectively withdrawn from circulation by being sent back to the issuer’s account.

Meanwhile, Ripple CEO Brad Garlinghouse has revealed that the US dollar-pegged stablecoin is launching “in weeks, not months.” 

With this timeline, RLUSD may become available before the end of Q3 2024 and almost before the end of the year. Even as the launch date draws closer, Schwartz’s statements offer more insight into Ripple’s cautious approach to rolling out RLUSD.

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