Ripple Launches RLUSD Stablecoin on Global Cryptocurrency Exchanges
The stablecoin Ripple USD (RLUSD) is now available on global cryptocurrency exchanges, with availability varying by jurisdiction due to different regulatory standards. Launched on December 17, RLUSD aims to maintain a constant value of 1:1 against the US dollar and is an ERC-20 compatible token on both the Ethereum blockchain and XRP Ledger.
Ripple's Stablecoin Experiences Initial Price Drop
On December 16, Ripple reported partnerships across the United States, Asia, the United Kingdom, and the Middle East, including Mercado Bitcoin, MoonPay, Uphold, Bitso, Archax, and Bitstamp. Despite its dollar peg, RLUSD saw a 20% drop in value on decentralized exchanges shortly after launch but quickly recovered to trade at its intended $1 benchmark, based on data from XPMarket.
RLUSD is fully backed by reserve assets such as cash and cash equivalents, ensuring stability during market volatility. It competes with market leaders like Tether's USDT, which has a market share of nearly $150 billion, and Circle’s USDC, the eighth-largest digital asset globally.
Ripple states that RLUSD is designed for cross-border payments and plans to leverage it for enterprise partners next year. The company emphasizes that RLUSD is an “enterprise-grade stablecoin built for everyone,” held to higher standards regarding reserves.
Not the First Stablecoin Entry
The launch of RLUSD coincides with rising institutional interest in the stablecoin market, as several major players seek to capture market share. Following Ripple's announcement, BitGo revealed plans to introduce its own native stablecoin, USDS, set to launch in 2025. Unlike traditional stablecoins, USDS will be developed as the “first open-participation stablecoin.”
Additionally, Ethena Labs launched its third stablecoin on December 16, backed entirely by BlackRock's BUIDL Fund. This new stablecoin maintains a 1:1 cash and equivalents reserve ratio, similar to USDT, and aims to assist users holding its flagship product, USDe, in managing difficult market conditions.