Ripple will launch RLUSD stablecoin on Ethereum and XRPL
Ripple has lately unveiled more insights concerning the upcoming introduction of its novel stablecoin. The firm disclosed that the stablecoin, coined Ripple USD (RLUSD), is poised for a debut on both the XRP Ledger and the Ethereum blockchain later in the annum.
A stablecoin pegged to the USD on a 1:1 basis, ensuring transparency and stability across the XRP Ledger and Ethereum anticipated later this year.
Linked to the American dollar at a one-to-one proportion, RLUSD is to be comprehensively supported by an amalgam of USD, short-duration US Government bonds, and equivalents in cash.
With this fresh venture, Ripple seeks to broaden its array of stablecoin services. Additionally, the firm anticipates bolstering the support for DeFi ecosystems, including AMM exchanges, by offering a steadfast asset solution.
This disclosure trails Ripple's fresh purchase of Standard Custody and the assignment of its CEO, Jack McDonald, as Chief Senior Vice President in charge of the stablecoin sector yesterday.
Moreover, Ripple has selected the Axelar interoperability framework for its XRPL EVM sidechain, opting for its accessible design over the prior XLS-38 bridge consideration. The firm highlighted Axelar's conjunction with premier projects and its security measures as crucial motives behind this choice.
Notwithstanding the recent advancements, RLUSD has stumbled upon regulatory hurdles. In a legal filing in May, the US Securities and Exchange Commission (SEC) argued that Ripple’s intended stablecoin constitutes an unrecorded crypto asset. As per the SEC, the stablecoin is an indication that Ripple may persist in activities infringing securities statutes.
