Ripple Labs to Launch Ripple USD Stablecoin Soon

Ripple Labs Set to Launch Its Stablecoin, Ripple USD

During the ongoing Korea Blockchain Week, Ripple Labs CEO Brad Garlinghouse announced that the company is on the verge of issuing its own U.S.-dollar pegged stablecoin, known as Ripple USD. In his remarks on Wednesday, Garlinghouse stated, “We will certainly launch soon. Weeks, not months.” He further emphasized that the stablecoin, referred to as RLUSD, has already been minted within the established framework.

Garlinghouse explained that the decision to develop this stablecoin arose after the well-known USD Coin (USDC), which holds the position of the second-largest stablecoin with a market capitalization of approximately $34 billion, lost its peg to the dollar in March 2023. “We felt like there was an opportunity for a credible player already working with many financial institutions to lean into that market,” he mentioned.

Ripple initially unveiled its plans for the stablecoin back in April, revealing that the token would be “100% backed by U.S. dollar deposits, short-term U.S. government Treasuries, and other cash equivalents.” The company commenced testing the stablecoin in early August with various enterprise partners, marking a significant step forward in its development.

The Ripple USD stablecoin is set to be deployed on Ripple’s institution-focused XRP Ledger as well as the Ethereum blockchain to begin with. It will utilize Ethereum’s ERC-20 token standard, ensuring compatibility and flexibility within the broader blockchain ecosystem.

This initiative comes at a time when the XRP Ledger network is being further enhanced with Ethereum-compatible smart contracts. These advancements will enable users to create on-chain exchanges and issue tokens, among other financial services, similar to what is currently possible on the Ethereum platform.