The moment of truth is approaching! Ripple CEO Brad Garlinghouse reveals details about his new stablecoin and promises an unprecedented impact. Indeed, at the “Korea Blockchain Week” in Seoul, South Korea, he expressed that the company’s stablecoin linked to the US dollar is close to being issued.
Ripple is on the ground this week in Korea and Japan, starting off with a few key announcements – all in service of the goal to strengthen the foundations of crypto infrastructure to support blockchain utility and usability for institutional adoption.
— Ripple (@Ripple) September 3, 2024
Specifically, he said at the event: “We are in a kind of private closed beta. It’s called Ripple USD (RLUSD) and it’s been built on that framework. We will definitely be launching it soon. In weeks, not months.”
Recall that Ripple Labs, the firm behind the popular XRP token, announced its plans to launch a stablecoin backed by the US dollar in April this year. Its goal is to complement XRP tokens by providing a reliable payment solution that can bridge traditional finance and decentralized finance (DeFi).
Similarly, in June, Ripple President Monica Long revealed that RLUSD had been tested on two blockchain networks, marking significant progress.
Testing, testing…RLUSD! We’re excited to share that Ripple USD (RLUSD) is now in private beta on XRP Ledger and Ethereum mainnet. RLUSD has not yet received regulatory approval and therefore is not available for purchase or trading – please be cautious of scammers who claim they…
— Ripple (@Ripple) August 9, 2024
Does Brad Garlinghouse have an ace up his sleeve? New stablecoin about to see the light of day
In detail, to ensure stability and user trust, Ripple has designed a solid backing structure for its new Stablecoin, RLUSD.
Each RLUSD unit will be backed by a reserve comprised of US dollar deposits, short-term Treasury bonds, and other cash equivalents. This 1:1 structure ensures that the value of RLUSD is always pegged to the US dollar, mitigating volatility risks and providing greater transparency in trading.
Incidentally, Brad Garlinghouse claimed that plans for the token were made after USD Coin (USDC), the second-largest stablecoin by market cap at $34 billion, lost its peg to the dollar in March 2023.
“We felt there was an opportunity for a credible player that already worked with many financial institutions to enter that market.”
Brad Garlinghouse
Ripple has no interest in going public in the United States
At the same event, Garlinghouse stated that Ripple has “no interest” in a US IPO, citing the challenging and inconsistent regulation of cryptocurrencies by the US Securities and Exchange Commission (SEC).
He essentially criticized the SEC’s inconsistent approach to Cryptocurrency regulation, pointing to the situation of Coinbase, which was approved for a public offering but then sued by the same agency.
To all this, he stated: “The SEC approved Coinbase’s IPO in the United States and now the SEC is suing Coinbase for the same things it approved.”
Garlinghouse sees hope in a possible change in SEC leadership
In that regard, Garlinghouse is optimistic about cryptocurrency regulation, particularly with the US presidential election approaching. He believes that new leadership could emerge at the SEC regardless of the election outcome, potentially creating a more favorable regulatory environment. In fact, he criticized current SEC Chairman Gary Gensler, stating that his actions have negatively affected his political party.
He said: “Not many companies can fight against such pressure. The SEC has enormous power and it takes a lot of money and confidence to fight it. However, from the beginning, we believed that we were on the right side legally and that we will be listed on the right side of history.”
Finally, Garlinghouse’s recent statements about his new stablecoin raised expectations as he assured the audience that the launch was imminent, stating that it would happen in “weeks, not months.”
I’ll leave you with this quote from Brad Kent Garlinghouse: “Our transparency has opened us up to attack. Ripple has tried to lead by example.”
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