Ripple’s highly anticipated U.S. dollar-backed stablecoin, Ripple USD (RLUSD), will be available for trading starting Tuesday. The launch follows approval earlier this month by the New York State Department of Financial Services, marking a significant milestone for Ripple in the stablecoin market.
Where RLUSD Will Be Available
Initially issued on both the Ethereum blockchain and the XRP Ledger, RLUSD will debut on select global exchanges, with plans for broader availability in the coming weeks. However, it will not immediately be listed on popular platforms like Coinbase or Robinhood.
Why Ripple Launched RLUSD
Ripple’s decision to launch RLUSD stems from the rising demand for stablecoins in cross-border payments, a cornerstone of the company’s business model.
“As we’ve been using stablecoins more and more in our flows, that really piqued our interest that we should have our own native stablecoin that can be more cost-effective and operationally efficient,” said Jack McDonald, Ripple’s Senior Vice President of Stablecoins.
Ripple’s Strategic Timing
The launch coincides with optimism in the crypto industry for more transparent and favorable U.S. regulations under President-elect Donald Trump’s administration. Ripple has previously navigated regulatory challenges, including a 2020 lawsuit from the SEC that alleged XRP was an unregistered security. A partial legal victory in 2023 clarified that XRP is not a security when sold to retail investors, paving the way for Ripple’s broader expansion.
The Growing Stablecoin Market
The market for dollar-backed stablecoins has surged, growing 50% in 2024, with Tether (USDT) and Circle’s USDC dominating the sector. However, Ripple sees RLUSD as a much-needed alternative to the incumbents.
“People are looking for an alternative — not to fully replace current options, but to diversify the market,” McDonald explained, highlighting concerns about concentration in the stablecoin space.
Complementing XRP and Expanding Use Cases
Ripple envisions RLUSD as a complement to XRP, leveraging both assets for distinct roles in cross-border payments.
“There’s a place in payments specifically for both XRP and stablecoins,” McDonald noted, emphasizing Ripple’s commitment to integrating stablecoins alongside XRP in its operations.
Ripple’s Position in the Crypto Ecosystem
As a 12-year-old business-to-business payments company, Ripple continues to lead in cross-border transactions, with 95% of its business conducted outside the U.S. The introduction of RLUSD is set to enhance its payments ecosystem and further bolster XRP’s role as a bridge asset within the XRP Ledger.
Competitive Landscape
Ripple’s entry into the stablecoin market follows similar initiatives by Robinhood, Kraken, and other crypto players with the launch of USDG on a Global Dollar Network. Additionally, MercadoLibre and fintech company Revolut have hinted at their own stablecoin projects, underscoring the sector’s rapid growth.
Ripple’s RLUSD is positioned to meet the evolving needs of financial institutions and traders alike, strengthening its foothold in the competitive world of crypto payments.
