Ripple Launches RLUSD Stablecoin, Eyes Cross-Border Payments

Ripple, a leading blockchain-based payments company, has officially launched its long-awaited stablecoin, Ripple USD (RLUSD). The new digital currency, first announced in April, began trading in December following approval from the New York State Department of Financial Services (NYDFS).

RLUSD will initially launch on the Ethereum network and the XRP Ledger, with plans to expand its presence across additional exchanges in the near future. Ripple envisions RLUSD being used for various purposes, including instant settlement, collateralization, and integration into the decentralized finance (DeFi) ecosystem.

Ripple's CEO, Brad Garlinghouse, expressed enthusiasm about the milestone, emphasizing the importance of RLUSD for the company's ongoing global expansion in cross-border payments. "With final approval from NYDFS, we're excited to move forward. Exchange and partner listings will be live soon, when RLUSD goes live, you’ll hear it directly from Ripple first," Garlinghouse tweeted.

This development occurs amidst the rapid growth of the stablecoin market, which has surged by 50% this year. Tether (USDT) continues to dominate, holding 70% of the market, while Circle’s USDC holds 20%. Ripple aims to differentiate itself in this crowded space, offering a fresh alternative to existing players.

Despite the promising launch, Ripple has faced significant legal hurdles. The Securities and Exchange Commission (SEC) filed a lawsuit against the company, claiming XRP was sold as an unregistered security. A favorable court ruling in 2023 determined that XRP is not a security when sold to retail investors on exchanges, although its status in institutional sales remains uncertain.

The RLUSD launch is strategically aligned with Ripple’s broader vision of optimizing cross-border payments. As the vast majority of Ripple’s operations take place internationally, RLUSD could further drive demand for XRP, which serves as a bridge asset in Ripple’s payment network. The integration of RLUSD within the Ethereum and XRP ledgers could further solidify XRP’s role in the growing crypto payments landscape.

In the wake of RLUSD’s release, Ripple has garnered praise from various industry figures, including Cardano founder Charles Hoskinson, who lauded the project as “awesome.” He also mentioned working on bringing the stablecoin to