Ripple and RLUSD: A new look at stablecoins

Stablecoins have gained prominence in the cryptocurrency world in recent years, offering users the ability to conduct secure and predictable transactions.

One such token is Ripple USD (RLUSD), issued by Ripple, which is an interesting solution for those looking for a secure way to store funds. RLUSD came about as a response to the need for stability within the ever-changing crypto market.

The creation of RLUSD was the result of the developers’ desire to combine the advantages of traditional currencies and innovative blockchain technologies. This currency aims to provide the most secure transactions possible without the risk of significant price fluctuations that are inherent in other cryptocurrencies. RLUSD aims not only to simplify financial interactions but also to make them transparent and accessible.

RLUSD is backed by a team of professionals striving to create a stable financial instrument. The presence of a clear concept and well-thought-out mechanism makes this token attractive for both investors and ordinary users seeking to protect their assets from market volatility.

Content:

• History of RLUSD: who created the Ripple stablecoin and why?
• Technical features of RLUSD: blockchains, collateral, and transaction speeds
• Where to buy and how to store RLUSD: exchanges, wallets, and convenient storage ways
• How to use RLUSD: transfers, trading, DeFi, and payments
• Comparing RLUSD with competitors: USDT, USDC, and DAI
• RLUSD risks: regulation, security, and market impact
• Conclusion: RLUSD outlook and its role in the crypto industry

History of RLUSD: who created the Ripple stablecoin and why?

RLUSD was created by Ripple Labs, a fintech company known as a pioneer in blockchain-based cross-border payments. Ripple itself was founded in 2004 by Jed McCaleb and Chris Larsen before bitcoin was even on the world stage.

In 2012, Ripple introduced the XRP Ledger (XRPL) blockchain as the core technology that supports the company’s innovation. In 2013, it launched the XRP token, which is currently the third most capitalized cryptocurrency after bitcoin and Ethereum at $151 billion.

What is Ripple?

Anyone who has the slightest idea about the crypto space has heard of Ripple, Ripple Labs, and XRP more than once

Read more

Ripple announced its stablecoin in June 2024. RLUSD, whose exchange rate is pegged to the US dollar at a 1:1 ratio, was created to simplify and cheapen financial transactions in the crypto ecosystem.

The stablecoin is fully backed by US dollar reserves, short-term US Treasury obligations and cash equivalents, which guarantees its stability and reliability.

Source: Coingecko

On December 10, 2024, RLUSD received approval from the New York State Department of Financial Services (NYDFS), marking a major milestone towards its launch. On December 17, the stablecoin was launched and appeared on global exchanges. To “responsibly” bring the coin to the market, the company created an advisory board. It included:

• Ripple co-founder and executive chairman Chris Larsen;
• Former head of the US Federal Deposit Insurance Corporation (FDIC) Sheila Bair;
• Partners Capital vice chairman and previous CENTRE Consortium CEO David Puth.

Through extensive collaboration with global financial institutions, RLUSD is expected to become a trusted stablecoin to support international transactions with high efficiency.

Ripple’s senior executive allows the possibility of RLUSD to be listed on Coinbase

The company is currently in talks with leading platforms to list the asset

Read more

Technical features of RLUSD: blockchains, collateral, and transaction speeds

RLUSD exists on two blockchain networks, XRPL and Ethereum, making the stablecoin suitable for different usage scenarios. Under XRPL, RLUSD offers high transaction speeds and low fees, while Ethereum enables the token to be used in smart contracts and decentralized applications (dApps).

RLUSD on Ripple (XRPL)

The XRPL network is characterized by high reliability and efficiency: transactions are confirmed in 3-5 seconds. The cost of transactions is only $0,0002. In addition, it is capable of processing more than 1500 transactions per second (TPS). RLUSD on XRPL is ideal for fast and scalable applications.

RLUSD on Ethereum

On the Ethereum platform, RLUSD is presented in the ERC-20 standard token format. This network provides flexibility, allowing integration into various applications and services. A high level of security is achieved through third-party audits, and management functions such as issuing and burning tokens are controlled through multi-signature wallets.

These two platforms provide RLUSD with a unique combination of stability, speed, and scalability, making it a valuable tool for users and companies alike. The stablecoin has several advantages that make it easy to use in different situations:

1. Instant transfers. RLUSD utilizes the speed of the XRP Ledger to provide near real-time transaction settlements, making it an ideal choice for international money transfers and payments.

2. Low transaction fees. Compared to traditional systems that charge high fees for cross-border transfers, RLUSD offers minimal fees, making it suitable for everyday use and microtransactions.

3. High liquidity. Backing from cash reserves provides RLUSD with sufficient liquidity to meet large trading needs on centralized exchanges (CEXs).

4. Multiple blockchain support. Released on the XRP Ledger and Ethereum networks, RLUSD provides flexibility to be used across multiple blockchain ecosystems.

5. Transparency and security. Blockchain technology ensures that all RLUSD transactions are recorded transparently and irreversibly, increasing user trust.

As a co-founder and active participant in the Crypto Climate Accord, Blockchain x Climate leadership network, and WEF’s Crypto Impact and Sustainability Initiative, Ripple is committed to a low-carbon crypto ecosystem and global economy. The project team noted:

“We work with the XRP Ledger — one of the world’s fastest, most energy–efficient blockchains, and the first major blockchain to be carbon–neutral — to enable sustainable crypto solutions and power more efficient, scalable carbon markets.”

Ripple is on track to achieve zero carbon by 2030 or sooner by reducing emissions, utilizing clean energy, and investing heavily in innovative carbon removal projects.

Where to buy and how to store RLUSD: exchanges, wallets, and convenient storage ways

Before the launch, Ripple confirmed that RLUSD would initially be available on five exchanges: Archax, Bitso, CoinMENA, MoonPay, and Uphold. CEO Brad Garlinghouse also noted that the stablecoin will soon be available on Mercado Bitcoin, Bitstamp, Zero Hash, Independent Reserve, and Bullish platforms.

Source: Х

The company said that new partnerships will be announced in the near future to increase the availability of RLUSD. The initial listings are expected to give the stablecoin wide access for users who need a secure and regulated digital asset.

A few wallets that support RLUSD are Xaman, Ledger Nano X, Trust Wallet, MetaMask, and Coinbase Wallet.

How to use RLUSD: transfers, trading, DeFi, and payments

RLUSD offers a wide range of options for users, making it a versatile tool in the world of cryptocurrencies. The first and perhaps most obvious use is making payments.

Users can conduct transactions with minimal cost and no delays, making RLUSD an ideal choice for paying for goods and services in both online and offline stores. Thanks to its stable value, users can rest assured that they will not lose money in the exchange.

In addition, RLUSD is actively used in the field of trading. Since this currency is offered with a fixed price, traders can use it to protect their investments from market fluctuations.

Fast transfers and the ability to retain value make RLUSD an important tool for risk management, which is critical when other cryptocurrencies are highly volatile.

RLUSD’s integration with decentralized financial platforms (DeFi) also greatly expands its functionality. Users can generate revenue from staking and providing liquidity on decentralized exchanges (DEXs).

Interoperability with various DeFi protocols provides ample opportunities to earn money and also increases the attractiveness of RLUSD as an investment instrument. All this emphasizes the token’s versatility and functionality in today’s environment.

Source: gemwallet

Comparing RLUSD with competitors: USDT, USDC, and DAI

In the modern crypto market, the main competitors of RLUSD are USDT, USDC, and DAI. Each of these tokens has its own features and advantages, but RLUSD stands out from them due to its unique collateralization mechanism and approach to maintaining stability.

USDT, created by Tether, is the largest stablecoin by capitalization. It is also pegged to the US dollar and promises users full collateralization with real assets. However, USDT has been criticized for its lack of transparency regarding reserves, which raises questions about its reliability.

RLUSD, on the other hand, emphasizes transparent data and regular audits, which may appeal to users concerned about the safety of their funds.

Tether’s General Counsel quits amid MiCA law coming into force

The European Union’s Markets in Crypto-Assets law introduces new requirements for issuers of stablecoins

Read more

USDC, created by Circle and Coinbase with an emphasis on a high degree of regulation, offers users transaction certainty and security. DAI, in turn, is an algorithmic stablecoin backed by other cryptocurrencies. However, the algorithmic model can be subject to high volatility, which is not always suitable for users looking for stability.

Thus, each of RLUSD’s competitors has unique features and drawbacks. However, the features that RLUSD offers, including its emphasis on transparency and security, make it an interesting choice for users looking for reliable and stable financial solutions.

RLUSD risks: regulation, security, and market impact

Despite its advantages, RLUSD is not immune to the risks that are inherent in many stablecoins. One of the main issues is regulation.

With changing legislation and increased scrutiny from financial regulators, it is unknown how this will affect the future of the token. Possible restrictions or bans on such assets could have a significant impact on its distribution and use.

In addition, there are risks associated with the loss of collateral in the RLUSD system. For example, sudden changes in the market or hacking of the systems that manage the token could cause significant fluctuations in the exchange rate. This could negatively impact users seeking to preserve their investments.

In addition to this, there are many stablecoins that have already established themselves in the crypto industry. RLUSD will need to compete for users’ attention with USDT and USDC. The competition for market position could be a major obstacle to its growth.

Criticism also concerns security issues, especially in the context of storing and transferring funds. Like many cryptocurrencies, RLUSD can be attacked by hackers, which creates additional risks for token holders.

The system should be constantly updated to protect against possible vulnerabilities. The community and experts warn about the importance of regular audits and security monitoring to minimize such risks.

Conclusion: RLUSD outlook and its role in the crypto industry

The prospects of the RLUSD stablecoin in light of current market trends and challenges look promising. Its focus on stability, security, and decentralized management may attract a large number of users. However, RLUSD may face serious competition and regulatory risks.

B2BINPAY names the main trends of the stablecoin market for 2025

The head of the company, Arthur Azizov, expects wider institutional adoption and the emergence of coins based on local fiat currencies

Read more

Nevertheless, active user participation in decision-making and continuous technology improvements could play a key role in its successful future. To achieve its goals, RLUSD must focus on expanding its functionality, improving user experience, and collaborating with other DeFi projects.

No matter what, stability and commitment to innovation always remain important factors on the way to successful development of the stablecoin. In the foreseeable future, if the project is able to cope with the current challenges, it has every chance to take a strong position in the world of cryptocurrencies.