Investors will be able to trade Ripple’s, XRP, new stablecoin beginning Tuesday
Ripple's new stablecoin will be available for trading starting Tuesday, following approval earlier this month by the New York State Department of Financial Services, the company announced.
The stablecoin, called Ripple USD (RLUSD), is pegged to the U.S. dollar and will be issued on both the Ethereum blockchain and the XRP Ledger. Initially, it will launch on select global exchanges, with plans to expand to additional platforms in the coming weeks. However, it will not be available on Coinbase or Robinhood at launch.
“The growth in cross-border payments has been a key driver for us to launch a stablecoin,” said Jack McDonald, Ripple’s senior vice president of stablecoins, in an interview with CNBC. “As stablecoins become more integral to our payment flows, we saw the need for our own native stablecoin to enhance cost efficiency and operational effectiveness.”
The launch comes as the crypto industry anticipates clearer and potentially more favorable regulations during President-elect Donald Trump’s term. Ripple has a complicated history with U.S. regulators, having faced a high-profile lawsuit from the Securities and Exchange Commission (SEC) in 2020 under Chair Gary Gensler. The SEC alleged that Ripple sold XRP as an unregistered security. In a 2023 ruling, a judge found XRP to be a security when sold to institutions but not when sold to retail investors on exchanges, granting Ripple a partial victory.
The stablecoin market, led by Tether (USDT) and Circle’s USDC, has seen its market cap grow 50% this year, with a 15% increase since the U.S. election. Tether holds a 70% market share, while USDC accounts for 20%.
“There’s a growing demand for alternatives to the dominant players,” McDonald noted. “While it’s not about replacing them entirely, there’s concern over market concentration, which regulators and new market entrants are increasingly wary of.”
Ripple, a 12-year-old company focused on business-to-business payments, primarily serves banks and financial institutions outside the U.S., facilitating cross-border transactions. While stablecoins have traditionally been used for trading, Ripple sees its stablecoin as complementary to its existing payment solutions.
“There’s room in the payments ecosystem for both XRP and stablecoins,” McDonald said. “We’ve supported other stablecoins in our payments business while also utilizing XRP where appropriate. We plan to continue leveraging both assets.”
XRP, the native token of the XRP Ledger, was created in 2012 by Ripple’s founders. Ripple remains the largest holder of XRP and uses it in its cross-border payments operations, 95% of which occur outside the U.S.
“By launching RLUSD on Ethereum and the XRP Ledger, we’re driving additional utility for XRP as a bridge asset within the XRP Ledger’s decentralized exchange,” McDonald added. “Expanding credible assets on the XRP Ledger benefits the broader ecosystem and XRP itself.”
Ripple’s move into the stablecoin sector comes as competition heats up in the space. Earlier this year, Robinhood, Kraken, Galaxy Digital, and other firms announced plans to launch a joint stablecoin, USDG, on a “Global Dollar Network.” Similarly, MercadoLibre and fintech company Revolut are developing their own dollar-backed stablecoins, reflecting the sector’s growing importance even before the election.