CEO Brad Garlinghouse announces new US dollar-backed stablecoin at Korea Blockchain Week, aiming to bridge traditional finance and DeFi.
Ripple, a prominent player in the cryptocurrency space, is gearing up to launch its new stablecoin, Ripple USD (RLUSD). This announcement was made by Ripple CEO Brad Garlinghouse during Korea Blockchain Week. The stablecoin is currently in closed beta and is expected to be released much sooner than anticipated, with Garlinghouse hinting at a launch in "weeks, not months."
RLUSD is a stablecoin pegged to the US dollar, meaning its value is directly tied to the value of the USD. This makes it a reliable and stable digital asset, unlike other cryptocurrencies that can be highly volatile. RLUSD is fully backed by US dollar assets and short-term US government bonds, ensuring its stability and reliability.
One of the primary goals of RLUSD is to bridge the gap between traditional finance and DeFi. By doing so, Ripple aims to improve the payment infrastructure within its network. This could facilitate more seamless cross-border transactions, making it easier and faster to send money internationally.
RLUSD is set to compete with other leading stablecoins like USDT and USDC. The demand for stablecoins has been on the rise, especially after the de-pegging incident of USDC in March 2023. RLUSD aims to provide a more reliable and transparent option for users, operating on both the XRP Ledger and the Ethereum blockchain. This dual compatibility could potentially revolutionize the stablecoin market by offering more flexibility and utility.
Despite facing regulatory challenges from the U.S. SEC, Garlinghouse remains optimistic about the future of cryptocurrency. He believes that RLUSD could play a significant role in the broader adoption of digital assets, helping to integrate them more seamlessly into the global financial system.
