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American blockchain payments company Ripple Labs Inc has made an emphatic leap in its bid to launch a stablecoin, as announced earlier. As revealed by Emi Yoshikawa, Vice President of Ripple for Strategic Initiatives, the proposed stablecoin will bear the ticker symbol "RLUSD."
Yuri MolchanThis ticker was unveiled at the ongoing XRPLApex summit in Amsterdam, Netherlands. Ripple broke Crypto X when it announced in April that it plans to launch a stablecoin that will be backed by the U.S. dollar. The move to launch the stablecoin comes naturally for Ripple Labs, considering it operates a payments business that can benefit from the stablecoin launch.
The crypto stablecoin market is one that is also very robust, with the USD stablecoin boasting a total circulating supply worth $16.5 billion, with Tether taking the lion's share. USDT dominates the stablecoin market, with more than $112.4 billion market capitalization. This is Ripple’s major target as it looks to stem the dominance of Tether on the broader stablecoin market.
Ripple Labs has not revealed many details about its stablecoin at the moment, except that it will be issuing it on XRP Ledger, its own layer-1 blockchain network. The exact launch date is not revealed yet, as it plans to secure all the necessary licenses before it can finally launch the stablecoin.
Alex DovbnyaRipple is trying to do things by the book at this time since it ran into a major roadblock with the Securities and Exchange Commission (SEC) over sales of XRP. It plans to avoid similar experiences with the regulator, who is already eyeing the stablecoin. While the case has made significant headway, the SEC has a record of filing a Wells Notice against stablecoin issuers, as it did in the case of Paxos over BUSD issuance.
With Ripple’s history, it is likely to pursue a flawless launch just as PayPal did when it launched its stablecoin PYUSD.
Arman Shirinyan
Dan Burgin
Vladislav Sopov
U.Today Editorial Team