Ripple’s RLUSD Stablecoin Launched

Ripple’s long-awaited U.S. dollar-pegged stablecoin, RLUSD, is finally here, sparking interest in its potential exchange listings. Jack McDonald, Ripple’s senior vice president of stablecoins, hinted at plans for more exchange support, including Coinbase. This week, Bitstamp confirmed it will support RLUSD.

> “There is a technical aspect to a given exchange saying that they want to support a given token…,” McDonald explained. Technical Requirements for Listing involve supporting the underlying blockchain and associated assets.

Last month, RLUSD was launched on Ethereum and XRP Ledger after receiving approval from the New York State Department of Financial Services (NYDFS). CTO David Schwartz indicated plans for future expansion to other networks.

Exchange Partnerships

While McDonald did not provide a specific number of exchanges expected to support RLUSD by 2025, he expressed confidence in additional listings by the end of the year. He remarked on partnerships with exchanges like Coinbase and Binance, which often have exclusive relationships with a single stablecoin.

> “Certain exchanges have very strategic relationships with one stablecoin…,” he said. Coinbase traditionally supports only USDC, but that may evolve. The platform also accommodates PAX, GUSD, PYUSD, and USDT.

McDonald noted that exchanges consider volume when integrating new stablecoins, ensuring the investment in tech support is justified.

The approval from NYDFS is advantageous for RLUSD, as McDonald stated, “That paves the way for other, particularly NYDFS regulated entities, to support it.” RLUSD stands out as the first XRP Ledger-based token on NYDFS’s approved asset list.

Future of Stablecoins

Looking ahead, McDonald predicts that larger, institutional stablecoin issuers will thrive amid compliance demands. “Only stablecoin issuers with institutional backing and robust compliance frameworks will endure the ‘war of attrition,’” he stated, acknowledging the challenges smaller issuers will face.

Liquidity is predicted to play a crucial role, with exchanges prioritizing trusted, liquid stablecoins. McDonald concluded, “This trend is marginalizing smaller issuers and amplifying the dominance of market leaders like USDT and USDC.”