This Leading Crypto Exchange Embraces Ripple’s Stablecoin: Details

TL;DR

Since its launch, RLUSD has been adopted by many leading cryptocurrency exchanges and some of which highlighted its use cases.
The latest to jump on the bandwagon is the European-based Bitstamp.

The Next to Join the Pack

Ripple’s stablecoin RLUSD officially saw the light of day in mid-December last year. Upon launch, several cryptocurrency exchanges embraced the product, including Uphold, Bitso, Moonpay, CoinMENA, and others.

Earlier this week, Ripple’s president, Monica Long, said people should expect other leading platforms to hop on the bandwagon “imminently.” Shortly after, the Luxembourg-based Bitstamp put its name on the list.

It added RLUSD on the Ethereum network, describing the stablecoin as “a robust solution designed for institutional-grade financial use cases.” It also reminded that the product is pegged 1:1 to the US dollar, claiming that it “offers consistent value for payments, tokenization, and more.”

The exact trading pairs available to Bitstamp users are RLUSD/EUR, RLUSD/USD, RLUSD/USDT, RLUSD/BTC, RLUSD/ETH, and RLUSD/XRP.

It is important to note that the company warned people to be careful when dealing with the stablecoin since it “is a high-risk investment and may not be suitable for all investors.”

“Don’t invest unless you’re prepared to lose all the money you invest,” it added.

The Initial Volatility

As mentioned above, RLUSD is designed to maintain a 1:1 peg to the greenback. However, during its first few weeks of existence, its price fluctuated substantially between $0.96 and $1.06 (per CoinGecko’s data).

Just a day before its official launch, Ripple’s CTO David Schwartz warned about potential enhanced volatility caused by speculative behavior or people willing to acquire the first fraction of RLUSD on decentralized exchanges at abnormally high prices.

The executive added that RLUSD should eventually settle at around $1, saying that if this is not the case, then “something is very seriously wrong.” He also advised people not to FOMO into the stablecoin since “it is not an opportunity to get rich.”

As observed on its price chart, RLUSD overcame the volatility, trading at around $1 ever since December 27.