Ripple CTO David Schwartz has finally addressed the rumors surrounding the RLUSD stablecoin. In a recent tweet, Schwartz suggested that RLUSD might initially only be available to institutions. This statement came in response to a query from a user who asked if RLUSD would be accessible to crypto retail as well. Schwartz compared it to other stablecoins like USDC and USDT, which are primarily accessible to institutions rather than retail users.
The decision to limit RLUSD to institutional access could potentially provide protection against risks associated with other stablecoins, such as USDT, which has faced scrutiny for alleged connections to money laundering and concerns over its stability. Schwartz also addressed concerns about potential manipulation of RLUSD, stating that it is unlikely to happen, especially once it is being actively used to move or store value.
Currently, RLUSD is undergoing testing in a private beta on both the XRP Ledger and Ethereum mainnet. Ripple CEO Brad Garlinghouse recently mentioned at an XRPL event that the stablecoin is nearing its release, suggesting a timeline of “weeks.”
Schwartz’s comments give us a glimpse into Ripple’s cautious approach to launching RLUSD. The company aims to broaden its reach into institutional and DeFi markets and enhance its payments infrastructure by introducing a stablecoin tied 1:1 to the USD on the XRP Ledger and Ethereum. This move is expected to open up new use cases, increase liquidity, and provide opportunities for developers and consumers in the decentralized finance space.
Ripple intends to ensure the stability and transparency of RLUSD by fully backing it with U.S. dollar deposits, U.S. government bonds, and cash equivalents. The company also plans to provide monthly third-party attestations to maintain confidence and reliability.
In addition to the RLUSD stablecoin, Ripple and the wider XRP community are looking to introduce more programmability, including smart contracts, to the XRPL developer ecosystem in 2025. This will be achieved through the XRPL EVM sidechain and by exploring native capabilities on the XRPL mainnet.