Ripple is once again making waves in the crypto world with the upcoming launch of its fully-backed RLUSD stablecoin. Scheduled to go live tomorrow, RLUSD will be available on the XRP Ledger (XRPL) and the Ethereum blockchain, ensuring access across major crypto ecosystems.
What is RLUSD? Ripple’s Fully-Backed Stablecoin
At its core, RLUSD is a fully-collateralized USD stablecoin developed by Ripple. Stablecoins are tokens that aim to maintain a 1:1 peg with a fiat currency like the US dollar. Unlike cryptocurrencies like Bitcoin, which experience volatility, stablecoins offer a more stable value, making them ideal for cross-border payments and remittances.
However, RLUSD plans to do more than just match the features of USDT or USDC. Ripple aims to leverage the speed and scalability of the XRP Ledger (XRPL), which boasts transaction finality in 3-5 seconds at a fraction of the cost of other blockchains. By deploying RLUSD on both the XRP Ledger and Ethereum networks, Ripple is expanding its utility to support both XRPL-based wallets and the vast ecosystem of ERC-20 tokens.
What Makes RLUSD Different from USDT and USDC?
The stablecoin market is currently dominated by Tether (USDT) and Circle’s USD Coin (USDC). So, what sets RLUSD apart from the rest?
1️⃣ Backed by USD 1:1 – Ripple claims that every RLUSD token is fully backed by real USD reserves, ensuring complete transparency. This approach mirrors USDC’s audited reserves, offering an edge over Tether (USDT), which has been criticized for its opaque reserve disclosures.
2️⃣ Cross-Chain Compatibility – RLUSD will be supported on both the XRP Ledger (XRPL) and Ethereum (ERC-20). This dual-chain strategy increases liquidity and ensures users from both ecosystems can access the stablecoin.
3️⃣ Advisory Powerhouse – Ripple has secured the support of high-profile advisors, including Raghuram Rajan, former Governor of the Reserve Bank of India (RBI), and Kenneth Montgomery, a former Federal Reserve executive. Their experience in financial regulation and monetary policy could help Ripple gain trust from financial institutions.
4️⃣ Faster and Cheaper Transactions – Payments via the XRP Ledger are faster and cheaper than those on Ethereum, which faces high gas fees. Ripple is banking on this speed to provide faster remittance services with lower fees, especially in the cross-border payments market.
Which Platforms Will Support RLUSD?
Ripple has confirmed that several well-known crypto platforms will support RLUSD from day one, with more expected to follow. Early launch partners include:
- Uphold – A global multi-asset trading platform known for supporting a wide range of cryptocurrencies.
- MoonPay – A leading crypto payment processor, offering users the ability to buy and sell cryptocurrencies with fiat.
- Bitstamp – One of the oldest and most reputable cryptocurrency exchanges, known for its strong regulatory compliance.
These early partnerships will ensure strong liquidity for RLUSD, allowing users to buy, trade, and convert the stablecoin with ease. Ripple has also hinted at more exchange listings coming soon, which could further boost the token’s adoption.
Big-Name Advisors Backing RLUSD
One of the most notable aspects of RLUSD is the backing of high-profile financial advisors. Ripple has secured the expertise of:
- Raghuram Rajan – Former Governor of the Reserve Bank of India (RBI) and former Chief Economist at the International Monetary Fund (IMF). His experience with global financial systems and regulation gives Ripple a strategic advantage.
- Kenneth Montgomery – A former Federal Reserve executive, bringing regulatory insight to Ripple’s board as it seeks to compete in the stablecoin market.
With such big names from traditional finance, Ripple is making it clear that RLUSD aims to compete with USDC and USDT as a more regulated, transparent, and institution-friendly stablecoin.
Why Is There So Much Hype Around RLUSD?
There’s growing excitement and speculation about RLUSD’s launch. Some traders are even betting on early price volatility, as demand could outpace supply in the early days of trading.
Although RLUSD is supposed to remain pegged to 1 USD, early demand has led to speculation that prices could spike beyond this level — with some calling for a potential pump to as high as $1,200 per token. Ripple, however, has issued a strong warning to traders:
“Don’t FOMO into a stablecoin.”
This warning aims to curb speculation, reminding users that stablecoins are designed to remain pegged at 1:1 with the US dollar, unlike tokens like XRP or BTC, which are prone to price swings.
How Does RLUSD Affect XRP Price?
The XRP price has been on a tear lately, and the launch of RLUSD could fuel more demand for XRP. Since RLUSD will operate on the XRP Ledger, users will need XRP to pay transaction fees when sending and receiving RLUSD.
This increase in utility for XRP could increase buying pressure on XRP, especially as more platforms list RLUSD. This launch is seen as Ripple’s strategic move to boost the usage of XRP, not just for remittances but also for stablecoin payments.
If the XRP price maintains its current upward trajectory, analysts predict it could hit $3 or more in early 2025. With the additional liquidity and exposure from the RLUSD launch, XRP could see increased demand from both retail and institutional users.
Ripple’s Strategy to Dominate the Stablecoin Market
Ripple’s entry into the stablecoin space is no accident. The $140B stablecoin market is growing rapidly, with institutions looking for safe and transparent assets for cross-border payments. Ripple sees RLUSD as the perfect opportunity to challenge the dominance of USDT (Tether) and USDC (Circle).
Here’s Ripple’s strategy in a nutshell:
- Regulatory Transparency – Full disclosure of USD reserves and prominent advisors on board.
- Institutional Adoption – Targeting banks, remittance providers, and payment processors.
- Global Reach – Leveraging the XRP Ledger to offer faster, cheaper payments.
With the support of global exchanges and advisory heavyweights like Raghuram Rajan and Kenneth Montgomery, Ripple is positioning RLUSD as a superior stablecoin that is faster, more secure, and more transparent than its competitors.
