Ripple’s RLUSD Stablecoin
Ripple has partnered with several major exchanges to support the upcoming launch of its new stablecoin, Ripple USD (RLUSD). The stablecoin pegged to the US dollar, will be distributed through leading platforms, such as Bitstamp, Uphold, Bitso, Independent Reserve, MoonPay, and CoinMENA.
These partnerships aim to expand the availability of RLUSD for various use cases in the crypto space, including payments and decentralized finance. Ripple’s RLUSD stablecoin is designed to serve as a trusted and secure digital asset, especially for enterprises looking to engage with blockchain technology.
A Standard and Compliant Stablecoin
Brad Garlinghouse, Ripple’s CEO, emphasized that this stablecoin will set a new standard for enterprise-grade digital assets. He stated that customers and partners have long been seeking high-quality, compliant stablecoins like RLUSD for financial services such as tokenizing real-world assets and facilitating cross-border transactions.
He further said that the stablecoin will also leverage Ripple’s existing XRP token to ensure faster and more cost-efficient international payments. According to Garlinghouse, RLUSD is aimed at driving mainstream adoption of crypto by offering a reliable and compliant solution to bridge the gap between traditional finance and blockchain technology.
A key aspect of RLUSD’s launch is its regulatory compliance. The stablecoin is one of the few issued under the New York Trust Company Charter.
Promoting Broader Financial Inclusion
Ripple has placed a strong focus on compliance, with an advisory board that includes Sheila Bair, the former chair of the United States Federal Deposit Insurance Corporation (FDIC). Bair stated that stablecoins like RLUSD could play a critical role in upgrading the global financial infrastructure while promoting broader financial inclusion.
Ripple first began testing RLUSD on the XRP Ledger (XRPL) and Ethereum mainnets in August. Notably, the stablecoin is backed 1:1 by US dollar reserves or equivalent assets.
Ripple has committed to providing monthly reports on the reserves to ensure transparency. Despite its legal challenges with the US Securities and Exchange Commission (SEC), Ripple has remained focused on expanding its services and launching RLUSD as a solution for businesses seeking a stable and regulated crypto asset.
Ripple’s partnerships with key exchanges mark a significant step in the rollout of the RLUSD stablecoin.
Paxos Launches New Stablecoin Payment Platform
Meanwhile, Paxos, a blockchain infrastructure firm, has launched a new stablecoin payment platform for payment service providers (PSPs) and fintech firms. The platform is designed to simplify stablecoin payments for businesses, enabling them to offer faster and cheaper transactions worldwide.
Furthermore, Paxos announced that Stripe, a leading payments company globally, would be the first to integrate this new infrastructure. This partnership brings stablecoin payments to a broader audience; Stripe’s “Pay with Crypto” feature will allow users to accept stablecoin payments and swap them for fiat currencies on the same platform.
The platform offers an enterprise-level application programming interface (API), allowing businesses to embed stablecoin payments into their systems. It supports three stablecoins: Tether’s USDT, Pax Dollar (USDP), and Circle’s USD Coin (USDC).
Businesses can convert these stablecoins into US dollars or keep the payments in these coins. Paxos has made the platform available in the United States but plans to expand internationally.
Merchants can also issue refunds by converting the fiat currency back into stablecoins and sending it directly to the customer’s wallet. The system supports on-chain transfers through Ethereum, Solana, and Polygon networks, offering multiple blockchain options for transactions.
Global Reach and Blockchain Flexibility
Paxos’ stablecoin payment infrastructure is focusing on payment service providers rather than individual merchants, allowing businesses to embed the technology into their systems. Paxos’ goal is to keep expanding its platform by adding new assets and blockchains based on customer demand.
This platform benefits businesses and customers by offering low transaction costs and facilitating faster payments. With Stripe’s reach across 70 countries, the integration of stablecoins into mainstream payments could open up more opportunities for global transactions.
With the stablecoin market continuing to grow, Paxos is positioning itself to become a key player in the payment services space.
