Important Ripple (XRP) Update
TL;DR
- Ripple plans to launch a stablecoin called Ripple USD (RLUSD) by the end of 2024, available on XRP Ledger and Ethereum. It promises benefits like deep liquidity for certain trading pairs, instant settlements, and programmable finance.
- The SEC has criticized RLUSD as an “unregistered crypto asset,” continuing its ongoing legal battle with Ripple since 2020.
More Attention to RLUSD
Ripple made waves earlier this year when it revealed that it would introduce a stablecoin pegged to the American dollar. At the time, CEO Brad Garlinghouse stated that the product would serve as a bridge between traditional finance and the cryptocurrency industry.
Ripple’s team has still not provided an exact date for the stablecoin’s official release. However, they explained it will be available on the XRP Ledger and Ethereum and should go live before the end of 2024. The team also revealed that the stablecoin will be called Ripple USD (ticker RLUSD).
Most recently, the product was added to the company’s official website, meaning 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 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 reads.
Ripple’s team argued that RLUSD would provide certain benefits, such as deep liquidity for selected trading pairs on centralized exchanges, instant settlements, and programmable finance.
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 firm 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 passed through multiple developments in the following years, becoming one of the hottest topics in the crypto space. It reached its trial stage in April 2024, meaning a resolution could be announced anytime.
Some industry participants view the SEC as the underdog in the dispute, pointing to Ripple’s three partial court wins secured throughout 2023. XRP’s price reacted positively to each of those, and it will be interesting to see how it performs once the case is officially closed.
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