As a seasoned researcher with a keen eye for detail, I find myself intrigued by Ripple CTO David Schwartz’s recent statements regarding the potential institutional-only availability of the RLUSD stablecoin. This move, if it indeed materializes, could be a strategic one, given the ongoing debates about the stability and security concerns surrounding other stablecoins like USDT.
David Schwartz, Ripple‘s Chief Technology Officer, has clarified rumors about the RLUSD stablecoin. In a recent tweet, Schwartz hinted that it may initially be available exclusively for institutional use.
Through a tweet, Schwartz expressed that it seems this asset can only be obtained directly by institutions. He asked if one could acquire USDC through Circle or USDT through Tether, as he is unable to do so himself.
It appears that these digital currencies (USDC from Circle and USDT from Tether) are mainly accessible for institutions directly, and not individually, as I am unable to obtain them.
— David “JoelKatz” Schwartz (@JoelKatz) September 8, 2024
In response to a query from an X user, Schwartz clarified that, at least for the beginning, RLUSD might be limited to institutions rather than individual crypto traders.
A user of the X platform suggested that limiting access to RLUSD exclusively to institutions might help safeguard it from potential risks associated with stablecoins such as USDT, which have faced criticism over suspected links to money laundering activities and questions regarding its stability.
Schwartz also alleviated worries regarding the possibility of manipulating the RLUSD stablecoin, suggesting that such an occurrence might be unlikely, except possibly during the initial testing stages prior to its usage for transferring or storing value.
At present, Ripple USD (RLUSD) is undergoing private testing on both the XRP Ledger and Ethereum‘s main network. As per recent reports, Ripple’s CEO, Brad Garlinghouse, hinted at the upcoming release of the Ripple stablecoin at a recent XRP event. He suggested that the release could be imminent, implying a timeframe within weeks.
As the planned release of RLUSD draws near, Schwartz’s comments provide a glimpse into Ripple’s careful strategy for introducing RLUSD in the market.
Ripple USD stablecoin
In April, Ripple unveiled plans to launch a stablecoin that would be pegged 1:1 with the U.S. dollar on both the XRP Ledger and Ethereum network. This move aims to expand Ripple’s influence within institutional and Decentralized Finance (DeFi) markets, increase the variety of its applications, and enhance its payment systems, ultimately bridging the gap between traditional finance and decentralized finance.
Stablecoins are an important entry point into DeFi, and adding an enterprise-grade stablecoin to XRP Ledger is expected to increase use cases, liquidity and opportunity for developers and consumers alike.
Ripple’s digital currency (stablecoin) has its value tied directly to the U.S. dollar, with backing from U.S. dollars held in deposit accounts, U.S. government bonds, and cash equivalents. To maintain trust and credibility, Ripple provides regular monthly reports by an independent third party for public scrutiny.
Beyond the RLUSD stablecoin, Ripple and the wider XRP community plan to introduce more functionalities like smart contracts into the XRP Ledger developer community in 2025. This will be achieved through the use of an XRPL EVM sidechain as well as investigating native abilities directly on the XRP mainnet.
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2024-09-08 13:20