Ripple Unveils Stablecoin Named Ripple USD (RLUSD) Amid Controversy With the SEC

Ripple became the talk of the town earlier this year when announcing that it will introduce a stablecoin pegged to the US dollar.

Highlighting the latest development, XRP army member @XrpCenter scanned the XRP Ledger and noticed that Ripple minted a small amount of its stablecoin, revealing that the product's launch might be just around the corner.

According to the XRP enthusiast, the stablecoin — known as Ripple USD (ticker RLUSD) — is being minted in preparation for its upcoming debut. The product will be pegged to the US dollar and will be available on both the XRP Ledger (XRPL) and Ethereum.

Its launch is expected later this year, and XRP users are eagerly awaiting the introduction of the stablecoin, which is anticipated to have a significant impact on the cryptocurrency industry. Some X users, including Cobb, claimed that the launch of the stablecoin could positively influence the price of Ripple's native token, XRP, in the near future.

As previously reported by Braun, Ripple's stablecoin will serve as a “bridge product” between XRP and Ethereum. It will reportedly provide “deep liquidity for major trading pairs” on certain centralized exchanges. Users will also be able to send the product around the globe in real-time with minimal fees and no bank account required.

The stablecoin's launch will be a major milestone for Ripple, which has been working on the project for the past couple of years. It is also expected to be a key product for the XRP ecosystem, providing users with a new way to use and trade the digital asset.

However, Ripple's intention to launch a stablecoin has already caused the US Securities and Exchange Commission (SEC) to raise eyebrows. In May, the agency labeled the product a “new unregistered crypto asset.”

The quarrel between Ripple and the SEC does not end with RLUSD. Those following the industry must be aware that the Commission sued the company in December 2020, accusing it of selling XRP in an alleged unregistered security offering.

The lawsuit passed through numerous developments in the following years before reaching a major milestone at the beginning of this month. Back then, Judge Torres ruled that the firm must pay a $125 million fine for violating certain securities laws. The sum might sound substantial, but it actually represents just a fraction of the $2 billion initially demanded by the SEC.

Multiple industry participants interpreted the decision as a victory for Ripple, while XRP's price also reacted positively. Both entities have until early October to appeal the ruling. While the SEC seems more likely to contend, there have been no indications of such a move so far.

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