Following Donald Trump’s victory in the 47th US elections, the crypto industry has seen a surge in valuations anticipating pro-crypto reforms in the coming months. Taking advantage of this wave of optimism, Ripple has launched its own stablecoin, RLUSD. The US-based fintech company behind the XRP cryptocurrency introduced RLUSD as a stablecoin pegged 1:1 to the US dollar, making 1 RLUSD equal to $1 (approximately Rs 85).
Stablecoins are cryptocurrency tokens that are backed by reserve assets such as gold or fiat currencies such as the US dollar. Prominent examples include Tether, USD Coin, and Binance USD. Unlike independent cryptocurrencies like Bitcoin or Ether, stablecoins are less sensitive to market volatility due to their asset backing, making them a reliable choice for both short- and long-term investments.
The launch of RLUSD marks Ripple’s entry into the stablecoin market. To support the RLUSD ecosystem, Ripple has established an Advisory Board to oversee the RLUSD ecosystem and provide strategic, regulatory, and operational guidance. Its notable members include former Reserve Bank of India (RBI) Governor Raghuram Rajan and other key advisors.
Talking about the future of stablecoins, Rajan hinted that these tokens may soon become an integral part of private payment systems.
“Stablecoins can become the backbone of private payments by providing a secure, scalable and efficient alternative to traditional systems. “Joining the advisory board gives me the opportunity to advise RLUSD in a rapidly evolving financial landscape,” Rajan said in a statement.
Raghuram Rajan served as the RBI Governor from 2013 to 2016, during which period the central bank took a cautious stance towards the crypto sector. Under his leadership, the RBI issued its first official warning to the public about the potential risks associated with these highly volatile virtual assets.
Earlier this week, Ripple posted more details about its advisory board on X.
The Ripple Stablecoin Advisory Board welcomes: the addition of Sheila Baer, David Puth and Chris Larsen –
:arrow_right:Raghuram Rajan (Former Reserve Bank of India Governor)
:arrow_right:Kenneth Montgomery (former first VP & COO, Federal Reserve Bank of Boston)A team that is no better than any other.
– Ripple (@Ripple) 16 December 2024
Ripple’s Outlook for RLUSD
This month, the total valuation of the stablecoin market exceeded $200 billion (approximately Rs 17,01,256 crore) for the first time, according to data from DefiLlama. Joining this growing ecosystem, Ripple’s RLUSD stablecoin is now live on Ethereum and related blockchains, as well as the XRP Ledger.
In the coming days, RLUSD will launch on platforms such as Bitso, Moonpay, and Coinmena, with additional listings planned on other crypto exchanges.
Ripple aims to leverage RLUSD for large-scale international settlements for its enterprise clients. The stablecoin will also be promoted as a liquidity tool for remittance payments.
Since its inception in 2012, Ripple Payments has processed over $70 billion (approximately Rs 5,95,474 crore) in transactions while serving over 90 payments markets.
