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Author: Marcel Deer, CoinTelegraph; Compilation: Baishui, Bitchain Vision
1. What is the RLUSD stablecoin of Ripple Labs?
RLUSD is a stablecoin developed by Ripple Labs, the organization behind XRP cryptocurrency.RLUSD, or Ripple Labs USD, is designed to provide a stable digital currency for trading and trading.
As a stablecoin pegged to the US dollar, 1 RLUSD vs. 1 US dollar.Each RLUSD maintains a 1:1 hook.These collateral assets are either US dollar deposits or cash equivalents.
On December 10, 2024, RLUSD received regulatory approval.The New York Department of Financial Services approved the XRP distributed ledger and new stablecoins on the Ethereum blockchain.
A week later, on December 17, RLUSD was officially launched and listed on five crypto exchanges: Uphold, MoonPay, Archax, Bitso and CoinMENA.Over time, Bitcoin availability will expand to include well-known companies such as Bullish, Bitcstamp and Bitcoin Market.
RLUSD will be included in the Ripple Payment Network in 2025.Ripple Payment Network will provide stablecoins for corporate customers who need global payments.It is expected to bring efficient and inexpensive cross-border transactions, especially for institutions.
Will RLUSD replace XRP?Ripple has confirmed that it is not a replacement for XRP.RLUSD is a form of digital cash.
2. How does RLUSD stablecoin work?
RLUSD works similarly to other stablecoins that are primarily pegged to the U.S. dollar, allowing individuals and institutions to deposit capital assets such as the U.S. dollar to mint each new coin.Cryptocurrencies can be traded on Ethereum and XRP Ledger blockchains.
The technology and concept of Ripple’s new stablecoin is essentially nothing new.It is a direct competitor to the veteran USDT and USDC players.
Collateral support ensures that prices remain stable and avoids volatility issues in some other cryptocurrencies.This reliability enables businesses and traders to trade away from unpredictable price fluctuations.
RLUSD is available on XRP Ledger and Ethereum blockchains.Therefore, you can use it as a trading pair on an exchange or send and receive transactions with others.
Here are the differences between RLUSD and USDT and USDC:
3. Advantages of RLUSD stablecoins
Ripple Labs’ RLUSD is expected to become a leader in the stablecoin field with its strong advantages, making it reliable, trustworthy and efficient.
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Stable value:RLUSD is designed to maintain stable value, a feature of RLUSD’s improvement of crypto-user payments and transactions.
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Regulatory approval:RLUSD is a trusted crypto project with NYDFS and Ripple Labs as developers.This gives it a huge credibility after its launch.
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Institutional payment focus:The token is designed for institutional payments, so organizations can expect smooth, fast, and cost-effective global transactions.
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Wide accessibility:Ripple is one of the biggest players in the blockchain world.They plan to launch RLUSD on multiple exchanges and will likely be available on every major cryptocurrency exchange soon.
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Multi-blockchain support:The new stablecoins will run on two blockchains—XRP Ledger and Ethereum.It can be used flexibly in a wide range of ecosystems.
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Fully supported reserves:Funds are guaranteed and each RLUSD is backed by an independent reserve of cash or cash equivalents.You can always exchange RLUSD for USD at a 1:1 ratio.
(The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs in December 2020. Regulators accused Ripple of selling XRP as an unregistered securities. It was not until July 2023 that Ripple won partially and the judge ruled to sell on the exchange.The XRP is not a securities, despite institutional sales violating securities laws. The U.S. Securities and Exchange Commission (SEC) appealed the decision in October 2024, and the crypto world is still awaiting a final ruling. )
4. Use cases of RLUSD stablecoin
RLUSD beta test results show that it is fast, reliable and cost-effective, making it available for a variety of financial use cases including payments, transactions, DeFi and tokenization.
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RLUSD Cross-border Payment:Cross-border payments may be the biggest use of stablecoins such as RLUSD.They allow you to send money to anywhere in the world immediately at the lowest cost.It is useful in a globally connected economy.
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In/out channel:Cashing in cryptocurrency can be a challenge.RLUSD provides a useful entry/exit channel for traders to enter and exit exchanges without volatility risk.
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Daily payment:Ripple Lab calls stablecoins “digital cash,” which suggests they want to use them for smaller daily payments.Another convenient use of fast and stable cryptocurrencies.
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Asset Tokenization:RLUSD enables you to tokenize real-world assets.Specifically, it allows institutions to provide collateral for trading real-world tokenized assets such as Treasury bonds, commodities and securities.
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DeFi:As RLUSD is integrated into the Ethereum blockchain, it will provide a trusted stablecoin to incorporate into the DeFi protocol.You shouldn’t be surprised to see it being used as a collateral option for a decentralized exchange (DEX) pair or loan agreement.
5. Future prospects of RLUSD stablecoins
RLUSD has grand plans.Ripple expects its market cap to exceed $2 trillion by 2028.
This is ambitious considering that Bitcoin only hit $2 trillion on November 11.December 2024 – 15 years after launch.The world’s leading stablecoin, USDT, had a cap of $138 billion at the time.
With regulatory approval, RLUSD will be launched in late 2025 and looks bright.
Since the start of testing of XRP Ledger and Ethereum mainnet in August, details of the release of Ripple stablecoin have been slowly revealed over the past few months.The difference between RLUSD and XRP is quite obvious and it has been confirmed that it is not a replacement for XRP but will complement Ripple’s cross-border payment solution.
Ripple has committed to stablecoin audits and transparency and conducts regular third-party audits of collateral reserves along with monthly financial reports.However, details of who will perform the audit process have not been determined.
