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RLUSD Starts Trading as Ripple CTO Highlights Use Case for Developers
- Ripple CTO David Schwartz says RLUSD, Ripple Labs’ new stablecoin, will potentially boost XRP trading volume.
- He also expects both assets to complement each other, as RLUSD acts as a bridge asset that can foster on-chain applications on the XRPL.
David Schwartz, aka “JoelKatz”, Ripple’s Chief Technology Officer (CTO), has detailed how RLUSD could boost XRP and strengthen the XRP Ledger (XRPL) ecosystem.
He noted the distinct yet complementary relationship between the two assets, with XRP always playing a vital role as a bridge asset to support users, developers and applications within XRPL.
Schwartz expects RLUSD to foster XRPL’s ecosystem with new on-chain applications:
RLUSD will contribute to the growth of on-chain applications such as Real World Asset (RWA) tokenization, foreign exchange, and settlement transactions based on XRPL’s speed, cost, and scalability.
David Schwartz, Ripple CTO Katz also praised the XRP Ledger’s auto-bridging system, which uses XRP as a bridge asset to streamline trades between various assets. Ripple President Monica Long previously clarified that XRP is primarily used for international payments, while RLUSD focuses on liquidity and tokenising real-world assets.
Moreover, Ripple Labs has stated that it will integrate RLUSD into its global payment network, Ripple Payments, to enhance the speed and efficiency of cross-border transactions.
Finally, Schwartz said they expect RLUSD to reach significant adoption in the stablecoin market, which is already saturated and commanded by giants like USDT and USDC.
Related: Australian Leaders Spearhead Revolutionary Trends in Blockchain Gaming
RLUSD Performance
RLUSD is a fiat-collateralised stablecoin launched on December 10 after receiving approval from the New York Department of Financial Services (NYDFS). The stablecoin is backed by US dollar deposits, short-term US Treasury Bills and cash equivalents.
It’s fully regulated, and the company is required to publish monthly attestations of RLUSD’s reserves conducted by third-party auditors.
Moving on, RLUSD has a market cap (according to Ripple) of over US$50M (AU$79M). But data shows its daily trading volumes are rather sad, barely reaching US$80K (AU$127.8K), according to CoinMarketCap.
Anyway, RLUSD is designed to simplify cross-border payments and facilitate seamless transitions between fiat and cryptocurrencies.
Something interesting to note about RLUSD is that it was also launched on the Ethereum network. This means users are also able to access DeFi’s largest ecosystem, allowing them to use RLUSD for decentralised applications (dApps). This also expands the stablecoin’s reach and liquidity, while making it compatible with Ethereum-based crypto wallets.
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
