TLDR
- Ripple CEO Brad Garlinghouse announced the name of Ripple’s upcoming stablecoin as RLUSD (Ripple USD or Real USD) at the XRPL Apex summit in Amsterdam.
- RLUSD will be a US dollar-pegged stablecoin available on the XRP Ledger and Ethereum blockchain.
- Ripple appointed Jack McDonald, CEO of the recently acquired Standard Custody, as Senior Vice President of Stablecoins.
- RippleX (Ripple’s development arm) announced the development of an EVM (Ethereum Virtual Machine) sidechain for the XRP Ledger to enhance DeFi capabilities and real-world asset tokenization.
- The EVM sidechain will use wrapped XRP (eXRP) as the native asset and gas token, and will be connected to the XRPL mainnet via the Axelar bridge.
Ripple, the company behind the XRP cryptocurrency, made a significant announcement regarding its foray into the stablecoin market during the XRP Ledger Community Summit (XRPL Apex) held in Amsterdam.
Brad Garlinghouse, the CEO of Ripple, unveiled the name of the company’s upcoming stablecoin as RLUSD, which stands for Ripple USD or Real USD.
RLUSD will be a US dollar-pegged stablecoin, meaning its value will be tied to the US dollar on a 1:1 ratio. This will provide stability and transparency to transactions involving the stablecoin.
Introducing Ripple USD (RLUSD): A 1:1 USD-backed stablecoin, offering transparency and stability on the XRP Ledger and Ethereum. Coming later this year.
Sign up to receive the latest stablecoin news, content and availability: https://t.co/ifguG77bO6
— Ripple (@Ripple) June 12, 2024
Garlinghouse expressed enthusiasm about the project, stating that it complements the broader XRP ecosystem.
RLUSD will be available on two blockchain networks – the XRP Ledger (XRPL) and Ethereum. This dual availability aims to cater to a diverse user base, ranging from XRP enthusiasts to developers and users of the Ethereum ecosystem.
By offering a stablecoin on both networks, Ripple aims to enhance the utility and adoption of RLUSD across different blockchain environments.
In a related development, Ripple recently acquired Standard Custody, a crypto custody solution provider. Following the acquisition, Ripple appointed Jack McDonald, the former CEO of Standard Custody, as the Senior Vice President of Stablecoins.
This strategic move underscores Ripple’s commitment to establishing a robust governance structure for its stablecoin endeavors.
While Garlinghouse did not disclose the exact launch date for RLUSD, the announcement suggests that Ripple is gearing up for its stablecoin debut, which is expected to occur before the end of 2024.
‘The name of the @Ripple stablecoin, the $RLUSD, I like to call it Real USD… Ripple USD’ – Brad Garlinghouse (@bgarlinghouse) at #XRPLApex 2024 ⚡💙 pic.twitter.com/cRVsgnQLXQ
— XRP Ledger Apex (@xrplapex) June 12, 2024
Alongside the stablecoin announcement, RippleX, Ripple’s development arm, unveiled plans to develop an Ethereum Virtual Machine (EVM) sidechain for the XRP Ledger.
This sidechain will bring EVM compatibility to the XRPL, opening up new opportunities for developers in the realms of decentralized finance (DeFi) and real-world asset tokenization.
The XRPL EVM sidechain will be connected to the XRPL mainnet via a bridge, utilizing wrapped XRP (eXRP) as the native asset and gas token.
This bridge will be facilitated by Axelar, a well-recognized blockchain interoperability solution provider. Axelar’s bridge has been successfully integrated with various projects, including Uniswap and Microsoft, further bolstering confidence in its reliability.
Ripple’s engineering team will collaborate with Peersyst, a technology company specializing in blockchain solutions, to enhance the interoperability and support the EVM sidechain launch.
Ferran Prat, the CEO of Peersyst, expressed confidence in Axelar’s bridge, citing its industry-wide recognition and successful integrations.
The introduction of RLUSD and the development of the EVM sidechain are significant steps for Ripple as it aims to expand its offerings and capture a share of the rapidly growing stablecoin market.
By providing a stable means of value transfer and enhancing the capabilities of the XRP Ledger, Ripple is positioning itself to cater to a broader range of use cases, potentially attracting new users and developers to its ecosystem.
