365Crypto
Ripple is set to launch its U.S.-dollar-backed stablecoin, Ripple USD (RLUSD), within weeks, according to CEO Brad Garlinghouse. RLUSD will be fully backed by U.S. dollar assets and tested with enterprise partners. It will operate on both the XRP Ledger and Ethereum blockchain.
Garlinghouse, speaking at Korea Blockchain Week, revealed that Ripple had been working on the stablecoin since USD Coin (USDC) lost its dollar peg in March 2023. Ripple saw an opportunity to enter the market with a credible, financially-backed token, given its strong relationships with financial institutions.
Ripple first announced its stablecoin plans in April, confirming RLUSD would be fully backed by U.S. dollar deposits, short-term U.S. Treasuries, and cash equivalents. Testing began in early August with enterprise partners, and the stablecoin will initially launch on the XRP Ledger and Ethereum, using Ethereum’s ERC-20 token standard.
This launch coincides with upgrades to the XRP Ledger, including Ethereum-compatible smart contracts, which will enable users to build financial services and on-chain exchanges similar to those on Ethereum.
