Ripple's New Stablecoin: RLUSD Set to Launch on XRP Ledger and Ethereum Blockchain

Ripple has recently unveiled more details about its upcoming stablecoin launch. In a recent announcement, the company disclosed that the stablecoin, named Ripple USD (RLUSD), will debut on both the XRP Ledger and the Ethereum blockchain later this year. Ripple CEO Brad Garlinghouse emphasized RLUSD as “Real USD,” highlighting its peg at a 1:1 ratio to the US dollar.

Key Takeaways:

• Ripple is launching a new stablecoin, Ripple USD (RLUSD), pegged at a 1:1 ratio to the US dollar.
• RLUSD will be available on the XRP Ledger and the Ethereum blockchain, backed by USD, short-term US Government bonds, and cash equivalent assets.
• Ripple's adoption of Axelar's interoperability platform for its XRPL EVM sidechain highlights its commitment to user-friendly integration and robust security.

The stablecoin will be fully backed by a blend of USD, short-term US Government bonds, and cash equivalent assets, as previously reported by Crypto Briefing. This initiative is part of Ripple's strategy to expand its stablecoin offerings and strengthen support for DeFi applications, including AMM exchanges, by providing a dependable asset solution.

Following Ripple's acquisition of Standard Custody and the appointment of Jack McDonald as Senior Vice President overseeing the stablecoin division, the company has announced further details about its RLUSD stablecoin.

Ripple Chooses Axelar for XRPL Upgrade Amid SEC Challenges

This development comes alongside Ripple's decision to opt for Axelar's interoperability platform for its XRPL EVM sidechain, preferring its user-friendly approach over the previously considered XLS-38 bridge. Ripple cited Axelar's integration with prominent projects and robust security features as pivotal factors in this strategic choice.

Despite these advancements, RLUSD has encountered regulatory hurdles. The US Securities and Exchange Commission (SEC) filed a legal document in May asserting that Ripple's proposed stablecoin constitutes an unregistered crypto asset. The SEC alleges that the stablecoin demonstrates Ripple's potential ongoing violations of securities laws.

FAQs:

• What is Ripple USD (RLUSD)? RLUSD is a new stablecoin launched by Ripple, pegged at a 1:1 ratio to the US dollar and backed by a blend of USD, short-term US Government bonds, and cash equivalent assets. It will be available on both the XRP Ledger and the Ethereum blockchain.
• Where to buy RLUSD? You will be able to purchase RLUSD on major cryptocurrency exchanges that support XRP Ledger and Ethereum-based tokens once it is launched. Keep an eye on announcements from Ripple for the specific platforms that will list RLUSD.
• Why did Ripple choose Axelar's interoperability platform? Ripple opted for Axelar's interoperability platform for its XRPL EVM sidechain due to its user-friendly approach and robust security features. Axelar's integration with prominent projects was also a significant factor in this strategic choice.
• What regulatory challenges is RLUSD facing? The US Securities and Exchange Commission (SEC) has filed a legal document asserting that Ripple's proposed stablecoin constitutes an unregistered crypto asset, indicating potential ongoing violations of securities laws by Ripple.

Disclaimer: This response provides information based on available data and general analysis. It does not constitute financial advice. Always perform your own due diligence and consult with a professional financial advisor before making investment decisions.