Ripple CTO David Schwartz Comments on RLUSD Stablecoin
Recently, Ripple’s CTO David Schwartz responded to speculation surrounding the new stablecoin, RLUSD. Schwartz emphasized in a social media post that RLUSD will initially be accessible only to institutional users.
David Schwartz: RLUSD Will Be Available Only for Institutional Users!
As reported by Kriptokoin.com, Ripple announced RLUSD as a significant step into the stablecoin market. Schwartz stated that RLUSD will not be available for crypto retail users. In response to a question from an X user about whether RLUSD could only be used by institutional users, Schwartz replied, “It will probably only be usable directly by institutions. Can you get USDC from Circle or USDT from Tether? Because I can’t.”
One user suggested that limiting RLUSD’s access to institutions might provide a safeguard against risks associated with other stablecoins like USDT, which have faced criticism due to money laundering allegations and stability concerns. Schwartz raised concerns about the potential manipulation of RLUSD, stating, “I don’t think it’s likely to happen before anyone really uses it to carry or store value, maybe aside from very early testing stages.”
Developers are currently testing RLUSD in a private beta phase on both the XRP Ledger and Ethereum. Ripple CEO Brad Garlinghouse recently mentioned at a XRPL event that Ripple is very close to launching its stablecoin and that this process could happen in “weeks.” Schwartz’s comments reflect Ripple’s cautious approach to launching RLUSD.
About Ripple USD Stablecoin
In April, Ripple announced plans to develop a stablecoin pegged 1:1 to the US Dollar on the XRP Ledger and Ethereum. This initiative aims to expand Ripple’s access to institutional and DeFi (decentralized finance) markets and diversify its use cases. Additionally, it seeks to improve payment infrastructure by bridging traditional finance with decentralized finance.
Stablecoins serve as a significant entry point into the DeFi ecosystem. Adding an institutional-grade stablecoin to the XRP Ledger is considered a major step in the industry. Experts expect this development to enhance use cases, liquidity, and opportunities for both developers and consumers. Ripple will fully back its stablecoin with US Dollar deposits, US government bonds, and cash equivalents. Furthermore, it commits to transparency through monthly third-party audits to ensure reliability.
In addition to the RLUSD stablecoin, Ripple and the broader XRP community aim to offer more programmability, including smart contracts, by exploring XRPL developer ecosystem, XRPL EVM side-chains, and native capabilities on the XRPL mainnet by 2025.
