Ripple’s RLUSD Stablecoin Likely to Be Exclusive to Institutional Investors
Ripple's RLUSD stablecoin is expected to initially be available only to institutional investors, as revealed by Ripple CTO David Schwartz.
In a recent social media interaction, Schwartz confirmed that RLUSD would likely follow a model similar to USDC and USDT, which are generally not accessible directly to individual investors.
Schwartz’s comments come in response to an XRP user’s suggestion that limiting RLUSD to large financial institutions would help prevent misuse and protect the stablecoin from potential risks. Ripple’s CEO Brad Garlinghouse has previously discussed the stablecoin’s upcoming launch, aiming to bridge traditional finance with decentralized finance (DeFi) and complement XRP.
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The RLUSD stablecoin, introduced in April and currently being tested on the XRP ledger and Ethereum, will be backed by US dollars and short-term US government bonds. Ripple plans to ensure transparency and global accessibility, issuing monthly reserve attestations to maintain trust in the stablecoin.
The launch of RLUSD arrives amid growing competition in the stablecoin market, where these assets play a crucial role by offering price stability and access to US dollars for traders and users in emerging markets.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
