Major Ripple (XRP) Update.

TL;DR

Ripple plans to launch a stablecoin called Ripple USD (RLUSD) in late 2024, available on XRP Ledger and Ethereum. It promises benefits such as deep liquidity for certain trading pairs, instant settlements and programmable financing. The SEC has criticized RLUSD as an “unregistered crypto asset”, continuing its ongoing legal battle with Ripple since 2020. More attention on RLUSD

Ripple made waves earlier this year when it revealed it would introduce a stablecoin pegged to the US dollar. At the time, CEO Brad Garlinghouse stated that the product would serve as a bridge between traditional finance and the cryptocurrency industry.

The Ripple team has not yet provided an exact date for the official launch of the stablecoin. However, they explained that it will be available on XRP Ledger and Ethereum and should be available before the end of 2024. The team also revealed that the stablecoin will be called Ripple USD (ticker RLUSD).

More recently, the product was added to the company’s official website, which means its launch could be just around the corner. “Ripple USD (RLUSD) is being designed to maintain a constant value of one US dollar. Issued on the XRP Ledger and Ethereum blockchains, Ripple USD will be fully backed by a segregated reserve of cash and cash equivalents and redeemable 1:1 for US dollars,” the section says.

The Ripple team argued that RLUSD would provide certain advantages, such as deep liquidity for selected trading pairs on centralized exchanges, instant settlements, and programmable funding.

The clash with the SEC

The upcoming stablecoin has already become a subject of controversy, receiving criticism from the US Securities and Exchange Commission (SEC). Several months ago, the regulator labeled it an “unregistered crypto asset”.

This is not the first confrontation between Ripple and the SEC. The agency sued the company in December 2020, accusing it and some of its executives of illegally raising more than $1.3 billion by selling XRP in an unregistered security offering.

The legal battle went through multiple developments in the following years, becoming one of the hottest topics in the crypto space. It reached its trial phase in April 2024, meaning a resolution could be announced at any time.

Some industry participants see the SEC as the underdog in the dispute, pointing to Ripple’s three partial court victories secured throughout 2023. XRP’s price reacted positively to each of them, and it will be interesting to see how it works once the case is officially closed.

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