Ripple (XRP) Chief Technology Officer (CTO) David Schwartz said on Sunday that the RippleUSD stablecoin might only be available for institutions, addressing user concerns about its launch. RippleUSD (RLUSD) is currently in private beta and is not available for purchase or trade as the asset is awaiting regulatory appeal, per Ripple’s announcement.
Ripple Labs CEO Brad Garlinghouse said at the Korea Blockchain Week that the firm’s stablecoin is close to issuance. Garlinghouse said the launch is close, likely within “weeks” and not months.
This timeline has raised speculation among XRP holders about the future usage of the stablecoin. XRP community member @KhaledElawadi asked whether it is possible for the stablecoin to be available only to institutions in order to insulate it from those who want to use it for money laundering.
Is it possible #RLUSD would only be available, at least initially, to institutions and not crypto retail?
— Khaled Elawadi.XRP (@KhaledElawadi) September 8, 2024
The reason why I suggest this is to insulate RLUSD from those that use Tether for money laundering and the effects of its eventual collapse.
Ripple CTO David Schwartz said that the token “will probably only ever be available directly to institutions”. Schwartz drew parallels between RippleUSD and USDCoin and USDTether in his response.
It will probably only ever be available directly to institutions. Can you get USDC from Circle or USDT from Tether, because I can't.
— David "JoelKatz" Schwartz (@JoelKatz) September 8, 2024
The trader’s concern is that USD Tether’s availability to users makes it available to market manipulators and international money laundering networks.
Ripple first dropped the details of its stablecoin plans in April. The firm said that the token would be 100% backed by US Dollar deposits, short-term US government Treasuries and other cash equivalents. There is no fixed timeline for launch at the time of writing.
XRP trades at $0.5309 on Monday, gaining 0.29% on the day.