Ripples USD Stablecoin RLUSD Set to Launch on Ethereum and XRPL
Ripple has announced that it will be launching a new stablecoin called Ripple USD (RLUSD). The company is planning to release it on the Ethereum network and the XRP Ledger (XRPL) later this year. The stablecoin will also go by the name “Real USD,” as stated by Ripple CEO Brad Garlinghouse.
This announcement comes after Ripple’s recent acquisition of Standard Custody, a move that will enable the company to issue its stablecoin and tokenize real-world assets. This is the second major acquisition for Ripple in the last year, following the $250 million acquisition of Metacon in May 2023. The acquisition of Standard Custody also adds a New York-regulated trust company to Ripple’s portfolio, expanding the company’s regulatory licenses and allowing for the provision of blockchain-powered enterprise solutions and services for institutional customers.
Ripple has also appointed Jack McDonald, CEO of Standard Custody, as Senior Vice President of the company’s stablecoin segment. McDonald’s extensive experience in investment banking, asset management, financial services, and fintech will be crucial in leading the stablecoin team and bringing Ripple’s stablecoin to market.
In addition to the acquisition and executive appointments, Ripple has announced its adoption of Axelar, a bridge solution that will facilitate connections between the XRP Ledger and compatible sidechains built on the Ethereum Virtual Machine (EVM) standard. The company cited Axelar’s proven track record and integration with major projects like Uniswap and Microsoft as reasons for choosing this solution over others.
However, Ripple’s stablecoin plans have already faced challenges from the U.S. Securities and Exchange Commission (SEC). In a reply brief filed in May, the Commission suggested that Ripple’s upcoming stablecoin could be considered an unregistered security, adding to the ongoing legal battle between Ripple and the SEC regarding the sale of XRP as unregistered securities.
Despite these challenges, Ripple’s stablecoin ambitions remain strong, with the company planning to launch the stablecoin later this year. The outcome of the legal battle with the SEC will likely impact the future of Ripple’s stablecoin and its standing in the stablecoin sector.
