Amy Yoshikawa, Ripple’s Vice President of Strategic Initiatives, has revealed that the proposed stablecoin will carry the ticker symbol “RLUSD.” Ripple Labs Inc., the American blockchain payments company, has made significant strides in its endeavor to launch a stablecoin, unveiling this ticker at the ongoing XRPL Apex summit in Amsterdam, Netherlands.
Ripple made headlines in April when it announced plans to introduce a US dollar-backed stablecoin, Crypto X. The move to launch a stablecoin aligns naturally with Ripple Labs’ operations, as it runs payment services that stand to benefit from a stable digital currency.
The stablecoin market is robust, with US dollar-pegged stablecoins having a total circulating supply of $16.5 billion, dominated by Tether (USDT), which boasts a market capitalization exceeding $112.4 billion. Ripple aims to challenge Tether’s dominance in the broader stablecoin market with its own offering.
Currently, Ripple Labs has disclosed limited details about the stablecoin, except that it will be issued on the XRP Ledger, Ripple’s proprietary layer-1 blockchain network. The exact launch date remains undisclosed as the company seeks to secure all necessary licenses before the official release.
Ripple is keen on adhering to regulatory guidelines this time, especially after facing significant challenges with the Securities and Exchange Commission (SEC) over XRP sales. The company aims to avoid similar regulatory hurdles, noting the SEC’s history of issuing Wells notices to stablecoin issuers, as seen with Paxos regarding its BUSD issuance.
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Given Ripple’s past experiences, it is likely to pursue a compliant route, similar to PayPal’s approach when it launched its PYUSD stablecoin.
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