Key Takeaways
- Ripple’s CEO revealed that the company’s stablecoin is on the verge of launch.
- Ripple’s US dollar-pegged stablecoin has been in beta testing since last month.
- The blockchain company hopes to take the $150B stablecoin market pie.
Ripple CEO Brad Garlinghouse has hinted at the imminent launch of a US dollar-pegged stablecoin, currently undergoing testing on both the XRP Ledger and Ethereum blockchain.
The news, shared during a fireside chat at Korean Blockchain Week, has sparked widespread speculation about the potential impact of this new development.
Ripple Stablecoin Launch in Weeks, Not Months
According to Garlinghouse, Ripple’s US dollar-pegged stablecoin, Ripple USD (RLUSD), is entering the final stretch of its closed beta phase.
The testing process, which began in August on both the XRP Ledger and Ethereum blockchain, is expected to conclude soon.
“We’re in a private kind of closed beta,” and “will certainly launch soon. Weeks, not months.” Garlinghouse said.
A Major Milestone
The addition of RLUSD to the XRP framework marks a major milestone in Ripple’s plans to create a reliable payment option, bridging the gap between traditional finance and decentralized finance.
The company first announced its intentions to launch a USD-pegged stablecoin in April. It aims to complement its XRP token and provide a stable store of value.
As the beta testing phase nears completion, Ripple shared that it looks to enter the $150 billion stablecoin market, currently dominated by Tether’s USDT and Circle’s USDC.
The company is eyeing to capture a major share of this market, with Garlinghouse citing the 2022 bear market and the subsequent debugging of USDC from its dollar-pegged value as a catalyst for their stablecoin launch.
“We felt like there was an opportunity for a credible player already working with lots of financial institutions to lean into that market,” Garlinghouse said.
With RLUSD, Ripple is positioning itself as a credible alternative to existing stablecoins, leveraging its established relationships with financial institutions to carve out a significant market share.
Ripple’s Major Technological Shift Post SEC Hurdle
Besides its highly anticipated stablecoin, Ripple has also planned a major technical overhaul of its cross-border remittance platform, XRP ledger (XRPL).
The company aims to transform XRPL into a layer-1 network by introducing smart contract functionality to the mainnet and developing an Ethereum Virtual Machine (EVM) sidechain.
The development could open up several avenues for XRPL, onboarding essential layer-1 features, including non-fungible tokens (NFTs), automated market makers (AMMs), and decentralized exchanges (DEXs).
The XRP community has clamored for smart contracts and stablecoins on the XRP Ledger for years.
However, its ongoing tussles with the US Securities and Exchange Commission (SEC) hindered much of Ripple’s ambitions.
With the lawsuit now settled, Ripple appears to be moving forward with fresh confidence.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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