Blockchain payments firm Ripple has unveiled a webpage for its much-anticipated stablecoin, Ripple USD (RLUSD). This webpage has led to excitement within the XRP community about the stablecoin’s imminent arrival.
With the launch, Ripple will enter a competitive sector where one issuer controls almost 70% of the market share. However, San Francisco-based firms will likely gain some market share based on their reputation and strong market presence within the blockchain industry.
Ripple touts RLUSD as a payment solution
Ripple is pitching its stablecoin as a purpose-built payment solution, likely an attempt to distinguish the RLUSD from several other stablecoins against which it would be competing. This aligns with the company’s core business as a cross-border payment solutions provider.
Talks about a Ripple stablecoin have been ongoing since April, when the company announced its intent to launch a USD-back digital asset. Since then, the crypto company has been making significant progress toward its launch by making different acquisitions and appointments for its stablecoin product.
Although the launch date has not been announced, the company has disclosed that the RLUSD will be issued on Ripple’s XRP Ledger and Ethereum network. However, issuance on several other blockchains will likely occur in due time, with Solana and Cardano considered top options.
Meanwhile, most of the information on the webpage is already publicly available. For example, RLUSD will be backed by a reserve of cash and cash equivalents, serving purposes such as remittance and money transfers, payment services, and centralized exchange.
However, the webpage contained a caveat that RLUSD availability hinges on regulatory approval. This is not surprising, given that Ripple has emphasized regulatory compliance as one of the core features of its stablecoin.
RLUSD to face stiff competition in the stablecoin sector
Despite the uncertainty surrounding the RLUSD launch date, the XRP community is abuzz with excitement over recent updates and signs of the imminent release. Many anticipate that the introduction of this stablecoin could positively influence the XRP token and bolster the use of XRP Ledger.
Ripple, particularly, explained that its stablecoin would further drive decentralized finance (DeFi) activity on XRPL. Notably, the blockchain recently welcomed its first tokenized U.S. Treasury bills through OpenEden’s TBILL and is also poised to introduce several new innovative features. So, Ripple stated:
“Bringing credible assets on the DEX, such as Ripple USD, will drive numerous benefits for [XRPL] users, developers, and apps.”
Yet, RLUSD will face substantial competition in the stablecoin market. The sector, valued at $164 billion, is predominantly led by Tether (USDT), which has a market capitalization of $114 billion, equating to a 69.82% market share. It is followed by Circle’s USDC, the second-largest USD-backed stablecoin, with $33 billion in assets.
Apart from the dominance of these two behemoths, Ripple’s RLUSD will still have to contend with PayPal-backed PYUSD and other fiat-backed assets like the First Digital USD (FDUSD) stablecoin, among others.
