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Ripple Set to Launch Own Stablecoin, Ripple USD
In a notable advancement within the cryptocurrency landscape, Ripple is poised to introduce its own stablecoin, Ripple USD (RLUSD), beginning this Tuesday. This development follows the approval granted by the New York State Department of Financial Services earlier this month.
The new stablecoin, which is designed to be pegged to the U.S. dollar, will initially be available for trading on a limited number of global exchanges, with plans from Ripple to broaden its accessibility to additional platforms soon after. However, major trading platforms like Coinbase and Robinhood will not support RLUSD during its initial launch period.
Ripple USD is set to operate on two prominent blockchain networks: the Ethereum blockchain and the XRP Ledger. This initiative reflects Ripple’s objective to boost the efficiency and reduce costs tied to cross-border financial transactions.
Jack McDonald, Ripple’s Senior Vice President of Stablecoins, underscored the importance of stablecoins in financial dealings, especially for international transactions. He commented, “The motivation behind launching a stablecoin stems from the significant growth we’ve observed in cross-border payments. Our usage of stablecoins in transactions has increased, which made it clear that developing our own native stablecoin could offer more cost-effective and operationally efficient solutions.”
The rollout of RLUSD signals Ripple’s strategic move into the burgeoning stablecoin sector, which is increasingly vital to the frameworks of digital asset transactions and payment systems. The company’s emphasis on enhancing cross-border payment solutions is in line with a broader industry movement towards utilizing blockchain technology to make international money transfers more streamlined and economical.
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