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Ripple’s RLUSD: Institutions-Only at Launch, CTO Confirms

Ripple’s RLUSD: Institutions-Only at Launch, CTO Confirms

CoineditionCoinedition2024/09/08 16:00
By:Nynu V Jamal
  • Ripple CTO David Schwartz asserts that RLUSD will be initially accessible only to institutions.
  • Schwartz guarantees RLUSD will be less vulnerable to market manipulators and money launderers.
  • Ripple’s XRP remains on a bearish track despite anticipations of the imminent RLUSD launch.

Ripple’s Chief Technology Officer, David Schwartz, has confirmed that the much-anticipated stablecoin RLUSD will initially be exclusively available to institutions. This news comes ahead of regulatory approval and the official launch of Ripple’s “Real USD.”

Schwartz also addressed concerns about market manipulation and money laundering, emphasizing RLUSD’s safeguards and drawing comparisons to other major stablecoins

Ripple’s RLUSD: The “Real USD”

Earlier in August 2024, Ripple had started the initial testing phase of RLUSD, dubbed the “Real USD” by CEO Brad Garlinghouse.

Read also: Ripple Burns All RLUSD Stablecoins Ahead of 2024 Launch, No Tokens in Circulation

On X (formerly Twitter), an XRP enthusiast raised concerns about RLUSD’s potential for misuse, particularly in regards to money laundering, if access is initially limited to institutions.  Schwartz acknowledged the concern but stated that the stablecoin would indeed remain exclusive to institutions at the outset. He drew parallels to prominent stablecoins like USDC and USDT, noting that individual users cannot directly access them either.

The XRP enthusiast further suggested that restricting RLUSD’s access could protect it from being exploited by bad actors. Schwartz agreed that this was a possibility, but only in the very early testing phases before RLUSD gains widespread adoption.

RLUSD’s Restricted Access

Schwartz reiterated that the stablecoin would remain exclusive to institutions initially. He reinforced his point by comparing RLUSD with USDC and USDT, highlighting that individual users cannot access them directly.

Addressing the potential risks of market manipulation and money laundering associated with RLUSD, Schwartz stated, “I don’t think that’s likely to happen except maybe in very early test phases before anyone is really using it to move or store value.”   

Read also: Ripple Endorses Kamala Harris as XRP Loses 50% to Bitcoin

XRP’s Current Trajectory

Despite the hype built upon RLUSD, Ripple’s XRP trails over a bearish track. Analysts have observed this bearish trend even as the platform witnesses milestones like the RLUSD launch and XRPL smart contract integration. At the time of writing, XRP is trading at $0.529 , reflecting a 3.4% decline over the past week and a 10.3% drop over the past month.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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