- Ripple is preparing to launch its RLUSD stablecoin to rival the USDT and USDC for instant cross-border payments.
- The company risks facing another lawsuit by the SEC but is forging ahead with plans, recently launching a website detailing its function.
XRP issuer Ripple Labs is inching closer to launching its Ripple USD (RLUSD) stablecoin, which was publicized earlier this year. Ripple is set to compete in the highly competitive landscape dominated by Tether’s USDT and Circle’s USDC.
CEO Brad Garlinghouse initially proposed the stablecoin and presented RLUSD at Amsterdam’s XRP Ledger Community Summit (XRPL Apex). However, no official launch date was shared, but President Monica Long had eluded to a launch in 2024.
As the San Francisco-headquartered company moves closer to launch, it has launched a separate website dedicated to the stablecoin project. Ripple plans to leverage blockchain technology through the XRP Ledger to facilitate cross-border transactions. The launch of the website has fueled enthusiasm amongst the XRP community.
Just In: #Ripple Labs has launched the official website for its new RLUSD stablecoin!
Set to launch on the #XRP Ledger, RLUSD aims to compete with #Tether and USD Coin.
pic.twitter.com/euWgVEhOql
— Collin Brown (@CollinBrownXRP) August 4, 2024
Pegged to the U.S. dollar, the RLUSD stablecoin will play a critical role in the crypto industry, offering holders a cheap and fast cross-border payment option. Initially, the stablecoin will be released on both the XRP Ledger and Ethereum, providing access to different ecosystems.
But as the community celebrates the ecosystem’s growth, some legal experts are warning that the launch of RLUSD could attract a new lawsuit. On the face of it, the website’s launch and the approaching RLUSD launch suggest that Ripple is optimistic of a near-end win of the ongoing Ripple v. SEC lawsuit.
While Ripple and some legal experts are confident of a Ripple win in the XRP lawsuit, some warn that the SEC could come after the fintech company for launching RLUSD. lawyer Fred Rispoli and XRP proponent, who recently commented on the website launch, shared the same sentiment. He noted:
Any issues the SEC has with $RLUSD is for another lawsuit and cannot be bootstrapped to one that is about to end!
The SEC is facing a loss in the four-year-long case based on legal merit and the likelihood of Donald Trump winning the upcoming November elections. Trump has promised to fire SEC chair Gary Gensler, which is a move to fuel-friendly crypto regulation and potentially end the Ripple case. The change in administration could further subvert any potential case involving the new stablecoin venture.
XRP Plunges Amid Market Wide Bloodbath
At the time of writing, XRP is trading for $0.4761 after a 10% plunge in the last 24 hours. This sees the 7th-ranked altcoin extend its weekly losses by 21%.
The drop is part of a market-wide decline that has rocked Bitcoin and other global markets. Driven by fears that a recession could hit the U.S., the crypto market is expected to rebound.
