In a significant development for cryptocurrency markets, Ripple is set to release its own stablecoin, Ripple USD (RLUSD), starting this Tuesday. The launch comes after Ripple received the green light from the New York State Department of Financial Services earlier in December.
The stablecoin, pegged to the U.S. dollar, will be available for trading on select global exchanges initially, with Ripple planning to extend its availability to additional platforms in the near future. However, notable trading platforms Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD) will not offer RLUSD at launch.
Ripple USD will be issued on two major blockchain networks: the Ethereum blockchain and the XRP Ledger. This move by Ripple is aimed at enhancing the efficiency and reducing the costs associated with cross-border payments.
Jack McDonald, Ripple’s Senior Vice President of Stablecoins, emphasized the role of stablecoins in financial transactions, particularly in the context of international payments. He stated, "Part of the impetus for us wanting to launch a stablecoin is the growth we’ve seen specifically in cross border payments. As we’ve been using stablecoins more and more in our flows, that really piqued our interest that we should have our own native stablecoin that can be more cost effective and more operationally efficient to use."
The introduction of RLUSD marks Ripple's strategic expansion into the stablecoin market, which is increasingly becoming integral to digital asset ecosystems and payment infrastructures. The company's focus on cross-border payments aligns with the broader industry trend of leveraging blockchain technology to streamline and economize international money transfers.
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