Ripple Secures 7 Major Partnerships Ahead of RLUSD Stablecoin Launch

The digital asset companies Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish were initial collaborators in bolstering the liquidity and adoption of RLUSD upon its release announced Ripple.

Market makers B2C2 and Keyrock are also on board to support the stablecoin’s liquidity. Ripple’s CEO Brad Garlinghouse expressed confidence in the stablecoin’s potential, stating:

“With our initial exchange partners, clear utility and demand for RLUSD, and a strong focus on regulatory compliance, Ripple’s stablecoin is poised to become the gold standard for enterprise-grade stablecoins.”

Garlinghouse emphasized that the company’s payment solutions will utilize RLUSD, XRP, and other digital assets to facilitate faster, more reliable, and cost-effective cross-border payments. While an official launch date for RLUSD hasn’t been announced, Garlinghouse hinted last month that the stablecoin would be introduced in “weeks, not months.”

Despite the anticipation, Garlinghouse has no plans for Ripple to go public in the United States, citing the Securities and Exchange Commission’s “pretty hostile” stance towards cryptocurrencies. RLUSD is designed for enterprise use cases, including real-time global payments, and serves as a stable bridge between fiat and crypto assets.

Each RLUSD token will be fully backed by U.S. dollar deposits, U.S. government bonds, and cash equivalents, ensuring stability and trust. The stablecoin will launch on both the XRP Ledger and Ethereum blockchains, offering a compliant and liquid USD-pegged asset for developers and users alike.

To guide the introduction of RLUSD to the market, Ripple has assembled an advisory board that includes former FDIC Chair Sheila Bair, former CENTRE Consortium CEO and JPMorgan executive David Puth, and Ripple co-founder and Executive Chairman Chris Larsen.

Sheila Bair spoke about her appointment, stating that stablecoins are crucial in upgrading our financial infrastructure and enhancing financial inclusion. She highlighted that as the digital assets sector expands, ensuring responsible innovation is essential for their acceptance, with an emphasis on protecting consumers and maintaining financial stability.

“Stablecoins are a critical component in the evolution of the digital economy, providing a bridge between traditional finance and the crypto market. They offer the stability needed for transactions, while utilizing blockchain technology to enhance transparency and efficiency,” David Puth added.

The stablecoin industry has seen rapid growth since 2014, reaching a market capitalization of $172 billion. However, the space is currently dominated by USDC and USDT, with even new entrants like PayPal’s stablecoin struggling to gain significant market share.

Despite these challenges, Garlinghouse believes RLUSD can compete with the leading stablecoins. “With our initial exchange partners, clear utility and demand for RLUSD, and a strong focus on regulatory compliance, Ripple’s stablecoin is poised to become the gold standard for enterprise-grade stablecoins,” he reiterated.

Ripple’s Head of Payments Products, Emily Long, explained that while XRP acts as a “bridge currency” used for transaction fees on the XRP Ledger, RLUSD serves different purposes. 

“We see RLUSD as more of the on and off ramp from the analog world, or the traditional world, or fiat currency world, where you need some way to get dollars in and out of the digital asset world,” Long said.

RLUSD is expected to be particularly useful for settling international payments and tokenizing real-world assets like securities, bonds, and real estate. This aligns with Ripple’s broader vision of partnering with banks and crypto exchanges worldwide to streamline global payments.

Ripple will be hoping the lingering after-effects of its ongoing battle with the SEC will be resolved soon.