Cardano founder Charles Hoskinson has expressed strong support for Ripple’s RLUSD stablecoin, describing it as “awesome” in a recent social media post. This endorsement comes as Ripple prepares to launch RLUSD on major exchanges, including Bitstamp, this Tuesday.
The stablecoin project, first unveiled by Ripple in April, recently received regulatory approval from the New York State Department of Financial Services (NYDFS). According to data from CryptoQuant, approximately $66 million worth of RLUSD tokens have been minted in the last two weeks, signaling strong market anticipation.
Ripple executive Jack McDonald outlined the versatile applications of RLUSD, including instant settlement, collateralization, and DeFi integration, highlighting its potential to become a cornerstone of the evolving crypto ecosystem.
RLUSD Faces Stiff Competition
While RLUSD shows promise, it will compete with market giants like Tether (USDT) and USD Coin (USDC). However, Ripple CEO Brad Garlinghouse has predicted rising demand for dollar-backed stablecoins, bolstered by increasing adoption in both retail and institutional sectors.
McDonald emphasized RLUSD’s regulatory credentials, calling it the “gold standard” of compliance. He pointed out that the stablecoin would be among the very few fully regulated stablecoins, ensuring trust and reliability for users.
Expansion Beyond the XRP Ledger
RLUSD will initially operate on the XRP Ledger and Ethereum networks. However, Ripple has plans to expand its blockchain compatibility, and Hoskinson revealed that he is working to bring the stablecoin to Cardano.
This collaboration highlights a growing relationship between Ripple and Cardano, underscored by a recent meeting between Hoskinson and Garlinghouse. Hoskinson described Garlinghouse as “extremely collaborative,” sparking speculation about further partnerships between the two blockchain powerhouses.
Ripple’s RLUSD stablecoin is poised to make waves in the cryptocurrency market as it officially launches. With its focus on regulatory compliance and utility in areas like DeFi, RLUSD has the potential to challenge established players like USDT and USDC while setting a new benchmark for stablecoin innovation.
