Important Update on Ripple’s Stablecoin: Details

TL;DR

Ripple plans to introduce a stablecoin on the XRP Ledger and Ethereum later this year, aiming to connect traditional finance and the cryptocurrency sector. The US Securities and Exchange Commission (SEC) has labeled the product an “unregistered crypto asset”, continuing its long legal battle with the company. Here is the latest information

Ripple made headlines earlier this year when it revealed it would launch a stablecoin pegged to the US dollar. CEO Brad Garlinghouse stated that the currency product could serve as a bridge between traditional finance and the cryptocurrency sector.

In a recent post on X, the team revealed more details, reporting that the stablecoin will be called Ripple USD (ticker RLUSD). It will be available on XRP Ledger and Ethereum and will see the light of day later this year.

Some crypto enthusiasts, including X user Alex Cobb, have previously suggested that the upcoming product could become an essential factor triggering a potential rally in the prices of Ripple’s native token, XRP.

Although not yet live, RLUSD has already become the subject of controversy. As expected, criticism came from the US Securities and Exchange Commission (SEC), which labeled it an “unregistered crypto asset”.

The agency has been taking on Ripple for years. He filed a lawsuit in December 2020, accusing the company and some of its executives of illegally raising more than $1.3 billion by selling XRP in an unregistered security offering.

The case reached the trial stage in April this year and went through numerous developments in the following months. Some might see the SEC as the underdog since Ripple won three partial court victories in 2023, leading to a substantial resurgence in XRP prices. Those who are curious to learn more about the demand and its potential impact on cryptocurrency, feel free to check out our dedicated video below:

What else is on Ripple’s agenda?

Launching RLUSD isn’t the only thing the company plans to focus on in the next three years. Earlier this year, CEO Garlinghouse stated that global expansion remains one of the other priorities:

“We’re going to continue to expand even though the US market, partly from a regulatory standpoint, has been slow to adopt. The non-US market has been very, very strong for us.”

The boss also described Ripple’s ambition to dominate the future financial infrastructure, emphasizing XRP’s potential role in the monetary system:

“We think this opportunity is huge, we think it’s going to be great for Ripple, we think it’s going to be great for XRP, so I’m very optimistic about it. I just think the United States has to figure it out.”

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!