Ripple CEO Brad Garlinghouse said that the company is “very close” to launching its U.S. dollar-pegged stablecoin during a fireside chat at Korea Blockchain Week in Seoul.
Garlinghouse said RLUSD is currently in a private beta phase and will go live within “weeks, not months.”
Ripple already kicked off the first tests of its stablecoin, Ripple USD (RLUSD), on the XRP Ledger (XRPL) and Ethereum mainnets. The company plans to deploy this fiat-backed token on additional blockchain networks in the future.
The decision to develop a stablecoin came after the depegging of USDC 18 months ago, Garlinghouse explained, noting that Ripple saw an opportunity for a credible player to enter the stablecoin market, which is currently dominated by USDT and USDC.
Ripple CEO assured that RLUSD will be overcollateralized, with each unit backed 1:1 by USD reserves or short-term cash equivalents in a bank. To ensure transparency, the firm promised third-party audits and monthly reports on the reserves. Ripple also confirmed its ongoing commitment to both XRP and RLUSD, dismissing rumors that it might shift focus away from XRP.
When asked about the possibility of an initial public offering (IPO) in the U.S., Garlinghouse dismissed the idea, citing the SEC’s “hostile” approach toward crypto. He criticized the SEC’s actions, including approving Coinbase’s public listing and later suing the exchange for activities it had previously authorized.
Garlinghouse added that he’s confident in the future of crypto, regardless of the outcome of the upcoming U.S. presidential election. He predicted new leadership at the SEC and said current Chairman Gary Gensler has lost support from both political parties.
Last month, Ripple was ordered to pay a $125 million fine in its legal battle with the SEC, significantly lower than the regulator’s original demand of $2 billion. Garlinghouse described the judgment as a victory, stating that Ripple was “on the right side of the law and history.”
Garlinghouse also criticized the SEC’s recent enforcement action against NFT marketplace OpenSea, arguing that the agency’s stance that NFTs are securities is misguided and that Ripple’s experience shows how costly defending against the SEC can be.
Despite these challenges, he remained optimistic about the future of crypto and mentioned the Financial Innovation and Technology for the 21st Century Act (FIT 21) as a positive legislative effort toward clarity in the U.S. crypto sector.
