While this strategy aims to provide a secure and controlled launch environment, it may not align with the expectations of retail investors who anticipated a more direct way to obtain RLUSD.
Ripple is preparing to launch its highly anticipated US dollar-pegged stablecoin RLUSD. However, Ripple’s Chief Technology Officer David Schwartz has recently revealed that RLUSD will initially be available only to institutional investors.
RLUSD Limited to Institutional Investors
Schwartz’s disclosure was made through a recent comment on an X post. Schwartz clarified that RLUSD will not be directly accessible to retail investors at launch. Instead, individuals will need to acquire the stablecoin through exchanges or other intermediaries. This approach mirrors the distribution model used by other major stablecoins like USDC and USDT, which prioritize institutional access before becoming available to the general public.
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 decision to focus initially on institutional investors is driven by a desire to manage regulatory risks and ensure compliance, particularly concerning anti-money laundering measures. By adopting a similar approach, Ripple is likely aiming to leverage tried-and-tested methods for stablecoin issuance, ensuring a smooth and compliant launch. However, this means that retail users will have to wait for RLUSD to become available through intermediary channels.
While this strategy aims to provide a secure and controlled launch environment, it may not align with the expectations of retail investors who anticipated a more direct way to obtain RLUSD.
Ripple’s Broader Plans and Technological Developments
The introduction of RLUSD is part of Ripple’s broader strategy to enhance its blockchain ecosystem. CEO Brad Garlinghouse has indicated that the stablecoin is in its final testing phases, with trials conducted on both Ripple’s and Ethereum’s blockchains. This dual-platform compatibility is expected to boost RLUSD’s functionality and market appeal.
Beyond the stablecoin, Ripple is also advancing its technological infrastructure. The company plans to integrate smart contracts into the XRP Ledger (XRPL), expanding its capabilities and supporting the development of decentralized applications. Additionally, Ripple will introduce an Ethereum Virtual Machine (EVM) sidechain to the XRPL, enhancing interoperability with other blockchains and offering developers new tools for innovation.
XRP’s Short Squeeze
XRP has seen recent price swings, influenced by market factors. Popular crypto analyst Crypto Michael noted that XRP experienced a short squeeze in August after Judge Analisa Torres’ decision in the SEC vs. Ripple case. A short squeeze happens when a surge in short positions drives the price up sharply. This boost in XRP’s price was brief and similar to a previous short-term rise last year.
Adding to XRP’s volatility, the XRP Ledger continues to face many challenges, with its market cap dropping to a low not seen since January 2022. Despite these challenges, XRP remains in 7th place by market cap and is currently trying to recover. The market will be closely watching XRP’s performance to see if it can regain its footing and build on recent developments.
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