Ripple Set to Launch Dollar-Backed Stablecoin RLUSD for Global Payments
Ripple will introduce its new U.S. dollar-backed stablecoin, RLUSD, to the market on Tuesday, following the green light from the New York State Department of Financial Services earlier this month. The company plans to roll out the asset on both the Ethereum blockchain and the XRP Ledger, offering it first on select international exchanges before broadening access over the coming weeks. For now, RLUSD will not be available on major U.S. platforms like Coinbase or Robinhood.
“We’ve seen significant growth in cross-border payment volumes that rely on stablecoins,” explained Jack McDonald, Ripple’s senior vice president of stablecoins, during an interview with CNBC. “This trend pushed us to create a stablecoin of our own, one that could lower costs and streamline operations within our existing flows.”
Ripple’s stablecoin launch arrives at a time when many in the crypto industry are hoping to see more transparent and supportive regulations in the wake of President-elect Donald Trump’s anticipated policy shifts. The company’s relationship with U.S. regulators has been complicated; in 2020, the Securities and Exchange Commission, led at the time by Gary Gensler, accused Ripple of selling XRP as an unregistered security. A subsequent ruling determined that while XRP qualified as a security when sold to institutional buyers, it was not considered a security when offered to retail investors on exchanges.
As the broader stablecoin market continues to expand—its total market capitalization has climbed 50% this year and advanced roughly 15% since the recent election—Tether (USDT) still dominates with a roughly 70% share. Circle’s USDC follows with about 20%. McDonald noted that Ripple aims to provide a meaningful alternative in a space currently led by a few major players.
“In talking to customers, we’ve learned there’s growing appetite for more choice among stablecoin issuers,” McDonald said. “While no one expects an immediate overhaul, adding RLUSD to the ecosystem could help address concerns about the market’s current concentration.”
Ripple, established 12 years ago, focuses on facilitating cross-border payments for financial institutions worldwide, with most of its business occurring outside the U.S. Although stablecoins traditionally serve as trading tools, Ripple sees RLUSD as a natural fit for its payment services, complementing its long-standing use of XRP in global transactions. The company has historically leveraged a range of stablecoins in its operations and will continue to rely on both XRP and stablecoins where each is most effective.
“There’s room for both XRP and stablecoins in the payments landscape,” said McDonald. “We’ve consistently incorporated outside stablecoins into our flows alongside XRP, and we’ll keep doing so. Launching RLUSD on both Ethereum and the XRP Ledger also increases the need for XRP to serve as a bridge asset within the XRP Ledger’s decentralized exchange, ultimately strengthening the ecosystem.”
Ripple’s entry into the stablecoin sector follows other recent announcements in the industry. In November, a consortium including Robinhood, Kraken, and Galaxy Digital revealed plans for a joint dollar-backed token called USDG, while MercadoLibre introduced its own stablecoin and reports suggest fintech giant Revolut may follow suit. For Ripple, RLUSD represents a strategic move to enhance global payment solutions and meet growing demand for stable, trusted digital assets.