Ripple’s RLUSD stablecoin, designed for USD-pegged transactions, will initially be available only to institutional investors, according to Ripple CTO David Schwartz.
In a recent exchange on social media, Schwartz compared RLUSD’s restricted access to other stablecoins like USDC and USDT, where direct purchases are also limited to institutions.
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Bridging Traditional Finance and DeFi
RLUSD, introduced earlier this year, is being developed to serve as a secure payment tool, bridging the gap between traditional finance and decentralized finance (DeFi) while complementing Ripple’s XRP. The stablecoin will be fully backed by US dollars and short-term US government bonds, with monthly reserve attestations for transparency.
Growing Competition in the Stablecoin Market
Ripple’s entry into the stablecoin market comes amid fierce competition, as stablecoins like USDT and USDC dominate with a combined market cap exceeding $150 billion. The stable nature of stablecoins provides traders with a hedge against the volatility of other cryptocurrencies, further positioning RLUSD as a key player in this rapidly expanding sector.
