Ripple Gears Up To Launch RLUSD, Will It Help XRP Surge To $1?

On Aug 9, 2024

Ripple (XRP) is gearing up to launch its widely anticipated stablecoin, RLUSD. The company’s foray into the stablecoin realm is dubbed iconic, considering the token is still under strict scrutiny from the US SEC.

The launch of RLUSD is set to help Ripple in several diverse ways. At the same time, the development also intends to bolster XRP’s price, catapulting it to new highs. Will XRP finally soar past $0.65 to hit $1? Let’s find out.

Also Read: Ripple (XRP): AI Predicts Price For August 10

RLUSD Launch: How Will It Impact XRP?

Ripple has lately been exploring the competitive realm of stablecoins. The firm is gearing up to launch RLUSD, its stablecoin, which is set to compete with sectoral behemoths such as USDT and USDC.

The idea of this stablecoin was first introduced at the Amsterdam XRP ledger community summit. Hints suggest that the launch will happen sometime in 2024, taking the stablecoin world by storm.

Benefits of RLUSD for Ripple

The launch of RLUSD is crucial for Ripple in many ways. For instance, it will help streamline cross-border payments by facilitating an XRP ledger. Per the new website launched for RLUSD, the stablecoin is set to play a critical role in determining Ripple’s future path, including XRP’s price trajectory and its adoption on a global scale.

🚨BREAKING: @Ripple has announced that it is preparing to launch its $RLUSD stablecoin for instant cross-border payments! #XRP is going to be the bridge currency for RLUSD to provide liquidity for cross border settlements! pic.twitter.com/elhN5Hl4tW
— JackTheRippler ©️ (@RippleXrpie) August 6, 2024

CEO’s Perspective

Speaking about its stablecoin, Ripple’s CEO, Brad Garlinghouse, shared how the launch of the stablecoin will help Ripple solidify its position in the DeFi and institutional realms.

Launching a stablecoin is a natural step for Ripple as we bridge the gap between traditional finance and crypto. We have 1/ the years of experience 2/ regulatory footprint 3/ a strong balance sheet and 4/ a network with near global payout coverage, to offer the best of… https://t.co/GlyqhYl9ES
— Brad Garlinghouse (@bgarlinghouse) April 4, 2024

“This move extends Ripple’s reach into both the institutional and DeFi realms, diversifying use cases and enhancing our payment infrastructure to bring the worlds of traditional and decentralized finance closer together.”

Financial Backing of RLUSD

Concerning RLUSD financial support, Ripple shared via X how the stablecoin will be backed with US dollars, government bonds, and cash equivalents to provide robust direction to the endeavor.

“Ripple’s stablecoin will be 100% backed by US dollar deposits, U.S. government bonds, and cash equivalents, and Ripple pledges transparency with monthly third-party attestations, ensuring trust and reliability.”

Ripple’s development of stablecoins aligns with the firm’s view of making XRP a pivotal institutional choice. As explained by Dilip Rao, their former head of infrastructure innovation, Ripple designed the token for institutional adoption.