Ripple USD (RLUSD) is a stablecoin cryptocurrency that aims to mirror the US dollar and is designed for quick and cheap cross-border payments.
Issued on the XRP Ledger and Ethereum, the RLUSD stablecoin is backed 1:1 by Ripple with cash (and cash equivalents like government bonds) in reserves to ensure its stability. This regulated cryptocurrency aims to unlock global transactions, facilitating everything from remittances to efficient trading settlements.
Who created RLUSD?
Ripple created Ripple USD in 2024.
Ripple, established in 2004 by Jed McCaleb and Chris Larsen, predates even Bitcoin. Since 2012, the company launched the XRP Ledger and established themselves as Ripple Labs.
The XRP Ledger was established in 2012 by three developers - David Schwartz, Jed McCaleb, and Arthur Britto. Shortly thereafter, they were joined by Chris Larsen, and the group founded by Ripple (renamed from OpenCoin).
With a focus on enabling seamless cross-border payments, Ripple collaborates with many financial institutions globally. This commitment to the traditional financial sector lends a certain level of credibility and stability to RLUSD.
RLUSD advantages
RLUSD is built using the XRP Ledger (XRPL), a type of distributed ledger technology (DLT), that allows for the secure and transparent recording of transactions and asset ownership.
Thanks to the XRPL, RLUSD offers several benefits that make it an attractive choice for individuals, businesses, and institutions:
- Instant settlement of the XRP Ledger's makes RLUSD a great currency for global transfers and real-time payments.
- Low transaction fees make RLUSD ideal for micropayments, cross-border remittances, and frequent transactions.
- Deep liquidity, thanks to the cash and cash equivalents reserves, ensures a stable price for users.
- Multi-chain issuance: Issued on the XRPL and Ethereum, RLUSD is accessible on and interoperable with different networks.
RLUSD use cases
RLUSD's stability, speed, and low fees make it suitable for several applications:
- Transfers and remittances: Individuals and businesses can bypass the often slow and expensive traditional systems thanks to the XRPL.
- Trading: Traders and institutions can make use of RLUSD to settle their trades and reduce their exposure to more volatile crypto assets.
Ripple USD essentials
- RLUSD is a stablecoin backed 1:1 with the US dollar, designed for fast and affordable cross-border payments.
- RLUSD is built using the XRP Ledger's technology for near-instant transaction settlement and offers deep liquidity due to its robust reserve backing.
- RLUSD finds applications in cross-border payments, remittances, trading and settlement, and potentially in future DeFi integrations.
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