Ripple caused a stir earlier this year with its announcement of launching a stablecoin known as Ripple USD (RLUSD). The CEO, Brad Garlinghouse, believes that this stablecoin could create a connection between the world of cryptocurrency and traditional finance. The stablecoin is set to be available on both the XRP Ledger (XRPL) and Ethereum, with the launch anticipated later this year.
During a recent private beta testing phase, Ripple minted 185 RLUSD tokens, as reported by on-chain data from XRP Scan. The transaction fee for this minting process was 0.000135 XRP. The team behind RLUSD has stated that the stablecoin will offer deep liquidity for major trading pairs on specific centralized exchanges, allowing users to send it across the globe in real-time with minimal fees and without the need for a traditional bank account.
Speculations within the XRP community suggest that the introduction of RLUSD could have a positive impact on the price of Ripple’s native token, XRP. However, Ripple’s decision to launch a stablecoin has not gone unnoticed by regulators. The US Securities and Exchange Commission (SEC) raised concerns in May, labeling RLUSD as a “new unregistered crypto asset.”
The conflict between Ripple and the SEC extends beyond the introduction of RLUSD. In December 2020, the SEC sued Ripple, accusing the company of conducting an unregistered security offering through the sale of XRP. After various legal proceedings, a significant development occurred earlier this month when the court ordered Ripple to pay a $125 million fine for violating securities laws. While this fine may seem substantial, it is far less than the initial $2 billion demanded by the SEC.
The recent ruling in favor of Ripple and the positive market reaction of XRP’s price have been seen as a victory by many industry participants. Both Ripple and the SEC have until early October to appeal the ruling, with speculation suggesting that the SEC may contest the decision. As of now, there have been no clear indications of the SEC’s next steps.
The launch of RLUSD by Ripple marks a significant development in the cryptocurrency industry, with potential implications for both the company and the broader market. Despite regulatory challenges and legal disputes, the introduction of RLUSD signifies Ripple’s continued efforts to innovate and bridge the gap between traditional finance and the world of digital assets.