Ripple Stablecoin To Be Launched in Weeks – CEO Brad Garlinghouse

Ripple Labs is gearing up to release its much-anticipated U.S.-dollar pegged stablecoin Ripple USD (RLUSD) within the next few weeks, according to CEO Brad Garlinghouse. 

While speaking at the Korea Blockchain Week, Garlinghouse confirmed that the launch is imminent, saying, “We will certainly launch soon. Weeks, not months.”

Ripple's move into the stablecoin market was motivated by the events of March 2023 when USD Coin (USDC), the second-largest stablecoin by market cap, briefly lost its dollar peg, raising concerns about stability and trust in the market. 

“We identified a gap for a trusted player like Ripple, already collaborating with numerous financial institutions, to provide a robust and reliable option,” Garlinghouse said.

Ripple’s Stablecoin RLUSD

Ripple first unveiled its plans for RLUSD in April, emphasizing that the token would be 100% backed by U.S. dollar reserves, short-term U.S. government Treasuries, and other cash equivalents. Initial testing of the stablecoin began in early August with select enterprise partners. The stablecoin will initially launch on Ripple's XRP Ledger, which caters to institutional clients, and on the Ethereum blockchain as an ERC-20 token.

This stablecoin initiative is part of a broader strategy by Ripple to enhance the capabilities of the XRP Ledger, including the addition of Ethereum-compatible smart contracts. These upgrades are designed to expand the ledger’s functionality, allowing users to build on-chain exchanges, issue tokens, and deploy other financial services, similar to what is possible on Ethereum. This aligns with Ripple's ongoing efforts to bolster its presence in the DeFi space, providing more tools for developers and institutions alike.

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The launch of RLUSD also underscores Ripple’s commitment to diversifying its offerings and responding to the evolving demands of the digital asset market. As competition heats up among stablecoins, Ripple's entry could provide a new level of credibility and security, especially in light of its established relationships within the financial sector.

What’s next for Ripple?

Ripple's push into the stablecoin arena reflects a broader trend in the crypto industry, where established companies seek to leverage their reputations and existing networks to offer more secure and compliant digital assets. This could potentially position RLUSD as a significant player in the stablecoin market, particularly for institutions seeking a trusted partner for their digital asset needs.