Ripple has once again made headlines by revealing its partners for its new Stablecoin. According to the official announcement, Ripple recently revealed its exchange partners and users for RLUSD, an enterprise-grade stablecoin denominated in USD.
Institutions and users will be able to access RLUSD worldwide through strategic collaborations with prominent global exchanges and platforms including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish.
The main aim behind Ripple’s new Stablecoin is to develop a currency that is built with “trust, liquidity, and compliance as its main tenets.”
Additionally, Ripple also announced that the RLUSD Advisory Board will comprised of former FDIC Chair Sheila Bair, Vice Chairman of Partners Capital and previous CEO of CENTRE Consortium David Puth, and Executive Chairman of Ripple Chris Larsen.
“With our initial exchange partners, the clear utility and demand for RLUSD, and a strong focus on regulatory compliance, Ripple’s stablecoin is poised to become the gold standard for enterprise-grade stablecoins,” said Brad Garlinghouse, Ripple CEO.
Why Did Ripple Venture Into Stablecoins?
Ripple’s XRP is one of the strongest cryptocurrencies in the market. However, its expansion decision into Stablecoin realm comes at a time when Ripple not only want to create different products for its investors but also dive into a rather secured trading segment.
Stablecoins are intended to be used often in everyday transactions, particularly for quick and inexpensive cross-border payments. Unlike other cryptocurrencies, stablecoins continue to run on distributed ledgers, or blockchains, which track and validate payments without the need for centralized organizations like banks, clearinghouses, or exchanges.
A crucial component of the crypto economy’s architecture, stablecoins act as a link between digital assets based on blockchain technology and conventional money issued by governments. They are becoming more and more common as means of payment for products and services as well as for cross-border transactions, particularly in emerging markets.
Compared to “unpegged” cryptocurrencies, which are roughly ten times more volatile than significant national currencies, stablecoins are intended to be less volatile.
Prominent market participants, like B2C2 and Keyrock, will bolster RLUSD’s liquidity, promoting wider market acceptance.
Ripple Keeps Expansion In Tandem With Goals
The news coincides with Ripple’s earlier this year ambitions to launch its stablecoin in an attempt to compete in the $170 billion and quickly expand stablecoin market.
At present, Ripple is one of the most dominating players in the crypto world as its native currency XRP has been in the top five list for years now. However, the expansion will help Ripple bring a wider userbase under its belt, specially those who wish to be a part of the crypto world but wish to stay away from volatility.