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Ripple’s RLUSD Stablecoin to Boost XRP, Provide Liquidity and Forex Use Cases
- Ripple’s upcoming stablecoin, RLUSD, is seen positively by insiders who believe it will enhance XRP’s utility and stability.
- The stablecoin, still awaiting regulatory approval, is in private beta testing on Ethereum mainnet and XRPL.
- RLUSD promises robust backing with USD deposits and government treasuries, audited monthly to ensure transparency.
- Ripple aims for RLUSD to support cross-chain interoperability and liquidity on its DEX, enhancing blockchain payment solutions.
Ripple announced earlier this year that they’re planning to launch a Ripple stablecoin named RLUSD. That had some in the XRP community worried that the release may be a bad thing for XRP. However, Tony Edward, host of crypto podcast Thinking Crypto, says he’s got some hot inside info on the topic which should ease investors minds.
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Edward spoke to a former Ripple staffer who also worked on the ODL development. This person explained to Edward that the stablecoin will benefit from being paired with XRP, due to XRP’s extensive availability on numerous exchanges and its substantial liquidity, which together will enhance the stablecoin’s utility and adoption.
The source added that the pairing will help stabilise RLUSD and prevent a Luna-style de-pegging event.
Further Edward said the person told him there would be “new use cases in forex and much more”.
X user Vet, XRPL validator and founder of the XRP Café, agrees with the views of the former employee saying “anything else is FUD”.
RLUSD Without Regulatory Approval
So far, Ripple’s stablecoin is of course not available for trading and actually doesn’t even have regulatory approval yet. In a tweet from August, Ripple shared that RLUSD is now in “private beta” testing on the Ethereum mainnet and the XRPL.
They have also cautioned that scammers are attempting to exploit unsuspecting investors.
Ripple added that RLUSD will be “100% backed by US dollar deposits, short-term US government treasuries, and other cash equivalents”. Unlike some other stablecoins out there, RLUSD will be audited by a third-party accounting firm and Ripple has promised to publish monthly reports on the audits.
In a blog post Ripple said the stablecoin is designed for enterprise-grade blockchain payment solutions, enhancing customer experiences through the integration with XRP.
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The stablecoin will support liquidity on Ripple’s Decentralised Exchange (DEX) and various decentralised finance (DeFi) protocols across multiple blockchains. The main aim is the promotion of cross-chain interoperability with cheap and fast transactions.
The price of XRP has been growing steadily over the past few months. While not exactly matching the stellar growth of some other digital assets, it has gained over 100% since a low in June 2022.
At that time, one XRP traded for US$0.29 (AU$0.42); as of the time of writing, the price is US$0.60 (AU$0.87).
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
