- The Ripple USD (RLUSD) stablecoin, tied to the US dollar, is set to launch on the XRPL and Ethereum blockchains.
- RLUSD will be fully backed by cash reserves, redeemable 1:1 for US dollars, increasing its trustworthiness.
- Transactions using RLUSD on the XRPL and XRP-EVM will require XRP for gas, potentially driving up XRP demand.
- Ripple’s CTO warns against overspending on RLUSD at launch, emphasising its role as a stablecoin, not an investment.
The XRP Community is eagerly awaiting the launch of the RLUSD stablecoin. The Ripple USD (RLUSD) is a stablecoin pegged to the US dollar, designed to maintain a stable value of one US dollar – keep that in mind, as we’ll come back to this shortly.
The RLUSD will be issued on both the XRP Ledger and Ethereum blockchains and Ripple says it will be “fully backed by a dedicated reserve of cash and equivalents, and redeemable on a 1:1 basis for US dollars”.
Georgios Vlachos, co-founder of Axelar, believes RLUSD will increase demand for XRP significantly. Speaking to Cointelegraph, Vlachos said that people in emerging economies (and others) use stablecoins as a store of value and medium of exchange.
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As RLUSD transactions will mainly settle on XRPL and the XRP-EVM sidechain this will increase the need for XRP.
When you do those transfers, you pay for gas in XRP. So, the XRP holders are still going to benefit because you burn some XRP every time you do a transaction.
In early 2024, Ripple announced a collaboration with Axelar Foundation to enhance the XRP Ledger’s interoperability with various blockchain networks.
In November, RippleX, the developer’s account on X, said the XRPL EVM Sidechain would connect to over 80 blockchains and leverage the low fees on XRPL.
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