Ripple has announced the exchange partners for its upcoming dollar-denominated stablecoin, Ripple USD (RLUSD).
The blockchain infrastructure provider has partnered with cryptocurrency exchanges and platforms, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA and Bullish, to facilitate the distribution of the stablecoin.
Ripple’s new stablecoin aims to become the “gold standard for enterprise-grade stablecoins,” according to Ripple CEO Brad Garlinghouse, who wrote in an Oct. 15 announcement:
“Customers and partners have been asking for high-quality stablecoins like RLUSD to use across various financial use cases, such as payments, tokenization of real-world assets, and decentralized finance.”
Garlinghouse added that Ripple’s payment solution will leverage RLUSD and the XRP (XRP) token to facilitate faster and more cost-effective cross-border payments.
Related: Investors claim Tether’s $118B reserves may face audit and liquidity risks
Stablecoins are the main on-ramp between the traditional and crypto economies. Issuing more regulatory-compliant stablecoins could increase crypto adoption, making stablecoins more accessible worldwide.
Regulatory compliance is key for Rippe’s RLUSD
Ripple’s RLUSD is one of the few stablecoins issued under a New York Trust Company Charter, positioning it for strict oversight.
With a significant focus on regulatory compliance, Ripple’s advisory board includes the former United States Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair.
Stablecoins will play a crucial role in the global financial system, Bair stated in the announcement:
“Stablecoins will play a key role in modernizing our financial infrastructure and broadening financial inclusion. I am honored to join Ripple’s advisory board as they launch their stablecoin with a compliance-first approach.”
Responsible innovation will remain key for crypto adoption as the industry grows, added Bair.
Ripple’s RLUSD began mainnet testing in August
Ripple’s RLUSD stablecoin was deployed for testing on the XRP ledger (XRPL) and the Ethereum mainnets on Aug. 9.
According to Ripple Labs, the upcoming stablecoin will be overcollateralized, meaning that each unit of RLUSD is backed 1:1 by US dollar reserves or short-term cash equivalents.
Related: UK, Colombia crypto exchanges linked in TD Bank record fine
Ripple also promised third-party audits of the underlying cash assets and monthly reports published on the reserves to guarantee transparency and accountability.
The mainnet tests of RLUSD followed an Aug. 7 ruling from Judge Analisa Torres imposing a $125-million penalty on Ripple Labs in a lawsuit with the US Securities and Exchange Commission, which was first filed in 2020.
What are stablecoins, and how do they work? Source: YouTube
Magazine: Pro-XRP lawyer ‘10x more into BTC, 4x more into ETH’: John Deaton, X Hall of Flame