The Ripple USD (RLUSD) stablecoin tied to the US dollar is scheduled to launch on the XRPL and Ethereum blockchains. RLUSD is fully backed by cash reserves and is convertible 1:1 with the US dollar, making it more reliable. Transactions using RLUSD in XRPL and XRP-EVM will require XRP as gas, potentially increasing XRP demand. Ripple's chief technology officer (CTO) warned against overspending at the launch of RLUSD, emphasizing its role as a stablecoin rather than an investment.
The XRP community is eagerly awaiting the launch of the RLUSD stablecoin. Ripple USD (RLUSD) is a stablecoin pegged to the US dollar and is designed to maintain a stable value of 1 US dollar. Keep that in mind, as we'll come back to this in a moment.
RLUSD will be issued on both the XRP Ledger and Ethereum blockchains, and Ripple says it will be “fully backed by dedicated cash and equivalent reserves and redeemable on a 1:1 basis with USD.”
Axelar co-founder Georgios Vlachos believes that RLUSD will significantly increase the demand for XRP. Vlachos told Cointelegraph that people in emerging countries (and other countries) are using stablecoins as a store of value and medium of exchange.
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RLUSD transactions are primarily settled on XRPL and XRP-EVM sidechains, increasing the need for XRP.
When you make these transfers, you pay for gas with XRP. This means that every time you make a transaction, some XRP is consumed, so XRP holders can continue to earn profits.
Georgios Brachos
In early 2024, Ripple announced a collaboration with Axelar Foundation to enhance the interoperability of the XRP Ledger with various blockchain networks.
RippleX, the developer account for X, announced in November that its XRPL EVM sidechain will connect to over 80 blockchains and take advantage of XRPL's low fees.
Some strange details have emerged regarding the launch of RLUSD. According to Ripple's chief technology officer David Schwartz (also known as Joel Katz), people are willing to fork over thousands of dollars for a single stablecoin.
Needless to say, stablecoins are not meant to increase in value and are not investments by their very definition.
But, as Schwartz pointed out, “supply shortages could occur very early on, before the market stabilizes.”
That's why some people want to spend exorbitant amounts of money on RLUSD.
In fact, there are people who are willing to pay $1,200/RLUSD for a fraction of 1 RLUSD. The tool will show you the best price anyone is willing to pay, even if it's only a small amount.
david schwartz
Don't FOMO on RLUSD, CTO says
Ripple's CTO said the price will eventually stabilize near $1, indicating that paying thousands of dollars for a stablecoin is unreasonable.
If you want to spend a lot of money and get some RLUSD before everyone else, you can do that. However, don't expect prices to rise above $1 once the situation stabilizes. I expect it to stabilize very quickly.
david schwartz
“The important thing about stablecoins is that the price is stable,” Schwartz said. And while volatility is to be expected, especially at launch, it won't last as “arbitrage traders quickly correct the market.”
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So if you're looking to make money with RLUSD, listen to David Schwartz.
Don't FOMO to stablecoins! This is not an opportunity to get rich.
david schwartz
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