- Ripple CTO David Schwartz asserts that RLUSD will be initially accessible only to institutions.
- Schwartz guarantees RLUSD will be less vulnerable to market manipulators and money launderers.
- Ripple’s XRP remains on a bearish track despite anticipations of the imminent RLUSD launch.
Ripple’s Chief Technology Officer, David Schwartz, has confirmed that the much-anticipated stablecoin RLUSD will initially be exclusively available to institutions. This news comes ahead of regulatory approval and the official launch of Ripple’s “Real USD.”
Schwartz also addressed concerns about market manipulation and money laundering, emphasizing RLUSD’s safeguards and drawing comparisons to other major stablecoins
Ripple’s RLUSD: The “Real USD”
Earlier in August 2024, Ripple had started the initial testing phase of RLUSD, dubbed the “Real USD” by CEO Brad Garlinghouse.
Read also: Ripple Burns All RLUSD Stablecoins Ahead of 2024 Launch, No Tokens in Circulation
On X (formerly Twitter), an XRP enthusiast raised concerns about RLUSD’s potential for misuse, particularly in regards to money laundering, if access is initially limited to institutions. Schwartz acknowledged the concern but stated that the stablecoin would indeed remain exclusive to institutions at the outset. He drew parallels to prominent stablecoins like USDC and USDT, noting that individual users cannot directly access them either.
The XRP enthusiast further suggested that restricting RLUSD’s access could protect it from being exploited by bad actors. Schwartz agreed that this was a possibility, but only in the very early testing phases before RLUSD gains widespread adoption.
RLUSD’s Restricted Access
Schwartz reiterated that the stablecoin would remain exclusive to institutions initially. He reinforced his point by comparing RLUSD with USDC and USDT, highlighting that individual users cannot access them directly.
Addressing the potential risks of market manipulation and money laundering associated with RLUSD, Schwartz stated, “I don’t think that’s likely to happen except maybe in very early test phases before anyone is really using it to move or store value.”
Read also: Ripple Endorses Kamala Harris as XRP Loses 50% to Bitcoin
XRP’s Current Trajectory
Despite the hype built upon RLUSD, Ripple’s XRP trails over a bearish track. Analysts have observed this bearish trend even as the platform witnesses milestones like the RLUSD launch and XRPL smart contract integration. At the time of writing, XRP is trading at $0.529, reflecting a 3.4% decline over the past week and a 10.3% drop over the past month.
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