Ripple, an innovative blockchain service company offering ISO 20022 digital asset solutions, has disclosed the exchange partners for its soon-to-be-launched dollar-anchored stablecoin, Ripple USD (RLUSD).
About the new partnership, Ripple CEO Brad Garlinghouse said, “As we continue to expand RippleNet, we are thrilled to announce that several partners are joining RippleNet today, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish.” These partnerships promote the dissemination and usage of RLUSD.
As per Garlinghouse, Ripple’s new stablecoin was designed to act as the standard for the company’s enterprise-grade stablecoins and promote cross-border payment integration into its payment solution. The company aims to launch faster, more efficient, and cheaper global transactions using RLUSD and Ripple’s internal token XRP.
Ripple’s RLUSD: Enhancing Regulatory Oversight for Stablecoin Adoption
Controlling their value against so-called stablecoins, such as US dollar coins, has been crucial for connecting the new and old economies. Garlinghouse noted that only constant focus on some essential rules and laws will help to gain people’s confidence and achieve the significant goal of extensive use of innovative technology. He pointed out that Ripple’s RLUSD stablecoin fits into a global strategy of mainstream digital asset adoption through regulatory-compliant tokens.
RLUSD is one of the few stablecoins that originate from the New York Trust Company Charter, which implies better regulatory control. The company aims to minimize risks associated with stablecoins through increased and enhanced regulatory supervision. Some of the board of advisers in Ripple include Sheila Bair, who formerly served at the Federal Deposit Insurance Corporation (FDIC) in the United States.
“Stablecoins will be critical to the future of the global financial system,” said Bair, who raised some key issues regarding stablecoins. He noted that as the crypto industry develops, there is a need for proper innovation.
RLUSD started its partnership with Ripple in August 2024 when the stablecoin went live for experimental purposes on the XRPL and the Ethereum network. The company confirmed that RLUSD will be overcollateralized, meaning that each unit of the stablecoin is backed 1:1 by holdings with US dollar reserves or short-term cash in the form of Treasury Bills to avoid volatility.
Another project prerequisite is transparency. Ripple has agreed to forward third-party audits on RLUSD’s reserves at least once a quarter and submit monthly reports.
The release of Ripple’s exchange partners for RLUSD follows an equally important legal landmark for the company. Earlier this year, in August, Ripple was required to pay $125 million as a penalty until the end of the US SEC case against the company, which the company began in 2020. However, this move into stablecoins only proves that Ripple remains determined to add to its portfolio of products and to dominate the innovation on the market for digital assets.
Therefore, with support from significant global exchanges and the primary emphasis on regulatory compliance, blockchain-based RLUSD may become a vital enabler of the international mainstream adoption of cryptocurrencies.
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