After Brad Garlinghouse announced the RLUSD stablecoin at the beginning of the month, more information was recently released, including key features, launch date, and exchange-listed partners. However, the Ripple vs. SEC lawsuit still puts tremendous pressure on blockchain service providers and native tokens, with users concerned about the impact on stablecoin performance and XRP price.
Why RLUSD Stablecoin could be a game changer
RLUSD is a stablecoin whose value is pegged to the US dollar at a 1:1 ratio. This provides additional stability compared to regular altcoins. The company launched it for use in cross-border payments. Furthermore, we expect it to reach a market capitalization of $2-3 trillion within five years and become a widely used payment tool.
Ripple’s CEO arranged an early start because Ripple is already planning a public partnership. It included top cryptocurrency exchanges like Bitstamp, Bitso, Uphold, and many others. The blockchain service provider also emphasizes that it will strategically develop this Ripple stablecoin to meet all regulatory standards, including New York Department of Financial Services (NYDFS) standards. Monica Long, president of the company, revealed that the RLUSD stablecoin is built to provide high transparency and compliance.
To beat the currently popular stablecoins such as USDT and USDC, the team has introduced a special advisory board to run the process smoothly. They have hired former Federal Deposit Insurance Corporation Chair Sheila Baer and many other influential figures. The company has primarily focused on customer and partner demand for high-quality stablecoins suitable for various financial needs, including payments, tokenization, and even DeFi. More importantly, this Ripple stablecoin is designed to enable faster, more reliable, and budget-friendly cross-border payments.
The official announcement declared:
With early exchange partner RLUSD’s clear utility and demand, and strong focus on regulatory compliance, Ripple’s stablecoin is poised to become the gold standard for enterprise-grade stablecoins.
In conclusion, it focuses on strict regulations, monthly audits (by third-party companies), and maintaining reliable reserves. This makes it stand out from other stablecoins. More importantly, the company’s goal of providing high transparency and compliance will make it a game changer in the crypto industry.
Is the RLUSD stablecoin a threat to XRP?
The never-ending lawsuits have left XRP users quite disappointed with the situation with their token. Ripple token is still struggling on the charts as the Bitcoin price rise continues towards new highs. As of this writing, the price of XRP is still around $0.54, which is nothing short of disappointing.
Now, with the conclusion of the lawsuit and the introduction of the Ripple stablecoin, things may get better, but some see this as a threat to XRP. However, the company’s CTO has already promised stablecoin holders that it will never replace them.
Only XRP can be used to pay transaction fees in XRPL. Everyone making transactions must have XRP to pay these fees. XRP is the only asset that any account can hold, has no counterparty or jurisdiction, and cannot be frozen or retrieved. XRP has structural advantages over XRPL…
— David “JoelKatz” Schwartz (@JoelKatz) October 8, 2024
According to him, XRP is the only way to pay this XRPL transaction fee. More importantly, all accounts must hold native tokens in order to make transactions. He also focused on automatic bridging, which ensures parallel collaboration rather than users threatening each other. However, he also pointed out that if Ripple’s stablecoin does better than XRP at what it can do, other stablecoins, rather than RLUSD, could outperform it. This shows the CTO’s unwavering confidence in the existing native token.
✓ Share:
Pooja Kardia
With a deep-rooted passion for reading and 5 years of experience in content writing, Pooja is currently focused on creating trending content regarding the cryptocurrency market. As an avid cryptocurrency journalist, Pooja is always on the lookout for trending topics and useful statistics to create engaging articles for cryptocurrency enthusiasts. Staying on top of the latest trends and advances in the field is an integral part of her daily routine, reinforcing her commitment to providing timely and insightful coverage.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
