Ripple has officially launched its new stablecoin, Ripple USD (RLUSD), directly challenging Tether’s dominance in the $125 billion market. The U.S. dollar-backed stablecoin, approved earlier this month by the New York State Department of Financial Services, is available for trading starting Tuesday on select global exchanges. However, it won’t initially be listed on Coinbase (COIN) or Robinhood (HOOD), according to CNBC.
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Jack McDonald, a senior executive at Ripple, explained the rationale behind the launch to CNBC: “Part of the impetus for us wanting to launch a stablecoin is the growth we’ve seen specifically in cross-border payments.” This move signals Ripple’s ambition to carve out a space in the growing stablecoin market, which has expanded by 50% this year alone, with Tether (USDT-USD) and USDC (USDC-USD) dominating the sector.
Ripple Targets Cross-Border Payment Efficiency
Ripple’s stablecoin aims to complement its existing cross-border payments business, which already leverages XRP for cost-effective transactions. McDonald emphasized that RLUSD will help reduce costs and improve operational efficiency, catering to a market increasingly demanding alternatives to dominant players. He added, “There’s a place in payments specifically for both XRP and for stablecoins.”
Ripple’s focus on payments, particularly outside the U.S. where 95% of its business occurs, aligns with its broader strategy of supporting financial institutions and businesses with seamless cross-border transactions.
At the time of writing, XRP is sitting at $2.6535.
