Ripple CEO Unvails XRP Ledger Stablecoin “Real USD”

Key Takeaways:

• Yesterday, June 11th, Ripple CEO Brad Garlinghouse unveiled an XRP (XRPL) Ledger Stablecoin dubbed Real USD (RLUSD).
• Real USD will exist on the XRP Ledger and the Ethereum network. Ripple will officially launch the stablecoin later this year.
• RLUSD is pegged to the US dollar and will maintain a 1:1 USD reserve.

On June 11th, Ripple CEO Brad Garlinghouse announced the name of the company's new stablecoin offering at the XRP Ledger Apex event. Garlinghouse stated that RLUSD is “complimentary, additive to what the overall XRP ecosystem is doing.” The project is set to launch later this year.

Ripple teased its stablecoin early this year, sharing some facts about the project and the broader stablecoin market. Ripple revealed that Real USD would be 100% backed by USD deposits, US government bonds, and cash equivalents. Unlike cryptos like USDT, RLUSD will be totally transparent and subscribe to monthly 3rd party attestations.

Another critical aspect of RLUSD, as announced by Ripple, is the asset's multi-chain support. From the get-go, RLUSD will launch on the XRP Ledger and the Ethereum network. Therefore, the token will be able to compete with stablecoins in the Ethereum ecosystem and lower-cost alternatives like TRC-20 assets.

Will RLUSD Impact the Price of XRP?

Experts value the stablecoin market at around $160 billion but expect this figure to rocket past $2.8 trillion as soon as 2028. With the XRP Ledger boasting fast, low-cost transactions and a large user base, RLUSD could see significant adoption.

The value of XRP has hovered around $0.50 for almost two months as the asset struggled to break out of its range. While the crypto market has been in a downtrend over the past week, news of Ripple's new stablecoin has caused a stir amongst investors. The terms “RLUSD,” “Brad Garlinghouse,” and “Real USD” all trended on X.com following the announcement, indicating significant demand for the product.

RLUSD will leverage its low-cost, high-throughput technology to take market share from more established competitors like USDT and USDC. If RLUSD's efforts succeed, we could see an increase in the number of people who want to buy XRP to cover network costs. Moreover, Real USD could cause more projects to be built on the XRPL, further fueling XRP demand.