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- Brad Garlinghouse announced final approval for RLUSD this week.
- David Schwartz urges investors not to overpay for the stablecoin before it stabilizes.
- Ripple has yet to confirm a specific launch date, but the stablecoin could debut by the end of 2024.
Ripple CEO Brad Garlinghouse recently announced that RLUSD, Ripple’s new stablecoin, received final approval from the New York Department of Financial Services. Ripple aims to integrate RLUSD with its XRP token to improve institutional transactions and cross-border payments.
However, they are mindful of the fierce competition in the stablecoin market, with major players like Tether’s USDT and Circle’s USDC already dominating the space.
Ripple plans for RLUSD to be fully backed by cash and equivalent reserves, ensuring it can be redeemed 1:1 for US dollars once fully operational. The XRP community is eagerly awaiting the stablecoin’s launch, with some speculating that early buyers might pay a premium to secure the first trades on Ripple’s decentralized exchange.
Despite this excitement for the coin, Ripple’s CTO, David Schwartz, reassured investors that RLUSD will maintain a 1:1 peg to the US dollar, as expected of any stable asset. He also warned against panic buying, urging caution to avoid inflated prices before the official launch.
Continue reading to know more about this Ripple news article.
Its Not an Opportunity to Get Rich – David Schwartz
Ripple CTO David Schwartz has advised investors to avoid making panic-driven purchases of the Ripple USD (RLUSD) stablecoin ahead of its official launch.
In a December 15 post on X (formerly Twitter), Schwartz highlighted the potential for price fluctuations due to an initial supply shortage.
This warning follows reports of pre-launch offers for RLUSD reaching as high as 511 XRP, or approximately $1,200. David Schwartz cautioned that early buyers might be paying inflated prices for the novelty of owning the first RLUSD tokens.
Schwartz stated:
“If you want to spend a lot of money to get a tiny bit of RLUSD before anyone else does, you can. But please don’t expect the price to stay over $1 once things stabilize, which I expect they will do very quickly.”
David Schwartz also cautioned that those paying inflated prices for RLUSD should not expect long-term profits. He reminded investors that the main purpose of a stablecoin is to maintain a 1:1 value with its fiat counterpart, such as the US dollar. He urged against panic buying, emphasizing that RLUSD is not meant to be a speculative asset.
David Schwartz added:
“Please don’t FOMO into a stablecoin! This is not an opportunity to get rich.”
Why Brad Garlinghouse Believes RLUSD Is Beneficial For XRP
Once launched, Ripple intends to integrate both RLUSD and XRP into its cross-border payments system to cater to its global clientele, as mentioned in the RLUSD beta testing announcement. Sources suggest Ripple views RLUSD as advantageous for XRP, with the two assets being paired together.
XRP will help enhance liquidity for RLUSD, thanks to its widespread availability on exchanges, while the stablecoin’s price will be stabilized through the pairing, reducing the risk of de-pegging.
Brad Garlinghouse, CEO of Ripple Labs, stated that RLUSD will primarily target large institutional players.
When is the RLUSD Going To Launch?
David Schwartz’s recent caution has reignited speculation about the launch date of Ripple’s highly anticipated RLUSD stablecoin.
While many expect the stablecoin to debut before the end of 2024, Ripple has not confirmed a timeline. CEO Brad Garlinghouse has urged the community to wait for an official announcement.
However, Ripple has been actively securing exchange partnerships for RLUSD, indicating that its launch may be imminent. In October 2024, the company revealed initial partnerships with platforms like MoonPay, Bitso, Bitstamp, Uphold, Independent Reserve, Bullish, and CoinMENA.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
