Ripple has officially launched its highly anticipated dollar-backed stablecoin, RLUSD, which is now trading on major crypto exchanges like Bitso, Uphold, CoinMENA, MoonPay, and Archax. With more platforms expected to join soon, the launch marks a pivotal moment for Ripple as it extends its blockchain capabilities beyond XRP.
RLUSD’s Early Volatility Raises Eyebrows
RLUSD, designed to maintain parity with the US dollar, is fully compatible with both the Ethereum blockchain and Ripple’s XRP Ledger (XRPL). However, despite its intended stability, RLUSD saw surprising volatility upon launch, trading as high as $1.50 on MoonPay, well above its $1 target.
Ripple CTO David Schwartz had warned of potential price discrepancies before the launch, attributing them to initial supply shortages. On X, he reassured users:
“The price will come back to very close to $1 as soon as supply stabilizes. If it doesn’t, something is very seriously wrong.”
This early premium follows a frenzy of pre-launch bids on Xaman, a crypto wallet for the XRPL. Some investors paid as much as 511 XRP (approximately $1,300) per RLUSD token in anticipation of its launch, demonstrating the immense interest in the new stablecoin.
XRP Price Reaction and Whale Accumulation
The RLUSD launch has also fueled increased activity on the XRP Ledger, propelling interest in XRP itself. The token experienced a 6% price surge, reaching $2.71 on Monday, before retracing to $2.52.
Blockchain analytics revealed significant whale activity in the lead-up to the launch. Crypto analyst Ali Martinez reported that whales purchased an additional 30 million XRP, contributing to the token’s bullish momentum.
In contrast, Bitcoin (BTC) and Ethereum (ETH) faced declines of 2.6% and 4.6%, respectively, highlighting Ripple’s growing dominance in the crypto space.
Regulatory Approval and Institutional Ambitions
The launch of RLUSD comes on the heels of regulatory approval from the New York Department of Financial Services (NYDFS). Ripple aims to integrate RLUSD into its payments business, targeting cross-border transactions for banks and institutions.
Ripple’s Senior Vice President of Stablecoins, Jack McDonald, emphasized the importance of institutional use cases:
“The stablecoin market is going through this next growth spurt where there’s going to be more institutional adoption… Stablecoins are the ‘killer app’ for global payments.”
While the initial wave of interest in RLUSD is driven by retail investors, Ripple envisions its stablecoin playing a critical role in international payment networks starting next year.
The Road Ahead for Ripple and RLUSD
Ripple’s RLUSD launch signifies a strategic move to bridge retail and institutional crypto adoption. With initial price volatility settling and increased whale activity signaling confidence, the stablecoin could become a cornerstone in Ripple’s mission to transform cross-border payments.
Stay tuned as Ripple’s RLUSD reshapes the crypto payment landscape and drives new opportunities for institutional integration.
