Ripple is once again in the headlines in the world of cryptocurrencies. Recently, the company has launched its new stablecoin RLUSD, which has also received approval from the New York Department of Financial Services (NYDFS). Since this announcement, a question is being raised rapidly – is Ripple now planning to leave XRP behind and push RLUSD forward?
Ripple CEO Brad Garlinghouse has put an end to these speculations and clarified that RLUSD is not a replacement for XRP, but it is a complementary part of the company’s broader crypto strategy.
RLUSD: Ripple's new step towards digital dollar
RLUSD, developed by Ripple, is a stablecoin that will be linked to the US dollar in a 1:1 ratio. This stablecoin is designed for institutional investors and payment networks that demand stability and transparency. Ripple has described it as fully backed by US dollars, short-term government bonds and cash equivalent assets.
After the approval of NYDFS, Ripple will now launch this token on both Ethereum and XRP Ledger. The company’s aim with RLUSD is to establish it as a “trusted and regulated stablecoin” that can challenge stablecoins like USDC and USDT in the current market.
Is XRP becoming irrelevant?
After this announcement of Ripple, the discussion intensified whether the role of XRP is going to end now. However, both Ripple’s CTO David Schwartz and CEO Brad Garlinghouse have made it clear that the role of XRP will still remain important.
According to Garlinghouse, “XRP is an important part of our basic protocol and transfer mechanism. RLUSD is not an alternative to it, but an additional tool that may be more suitable in certain use cases.”
XRP is said to play a central role in RippleNet and ODL (On-Demand Liquidity) services, where it acts as a fast, low-cost and bridge currency. At the same time, RLUSD is being seen as an alternative to institutional stable payments and digital dollars.
Ripple's market strategy and global outlook
Ripple’s move is not limited to just launching a new token. The company aims to establish RLUSD as a standard in the global payment system. Ripple plans to use this stablecoin in large quantities in cross-border payment services, e-commerce and DeFi platforms in the coming years.
The company also claims that RLUSD will be listed on major crypto exchanges – such as Bitstamp, Uphold, Bitso and MoonPay – in the first phase. Ripple’s long-term goal is to bring RLUSD to the list of top 5 global stablecoins.
Investor response
Ripple’s strategy has received a mixed response from investors and the crypto community. While many consider RLUSD to be a stable, transparent, and regulatory-approved alternative, confusion remains among some XRP supporters.
Although Garlinghouse has made it clear that the two tokens will go hand in hand, handling market sentiment will not be easy for the company. XRP has faced several regulatory hurdles over the past few years, especially after the SEC lawsuit.
Conclusion
Ripple’s new stablecoin RLUSD is part of the company’s strategy to empower the global payment network. XRP still has a dominant role, but RLUSD will work alongside it – not to replace it.
After CEO Brad Garlinghouse’s clarity, it is certain that Ripple’s focus is no longer on just one token, but on a strong and diverse token ecosystem. It will be interesting to see in the coming times how the company maintains a balance between both the tokens and how it further strengthens its position in the crypto world.