RLUSD could be a stablecoin accessible exclusively to institutions in its early stages, according to recent statements by David Schwartz, CTO of Ripple, on social media.
Schwartz commented on X that RLUSD, Ripple's long-awaited stablecoin that could launch in the coming weeks, could be accessible only to institutional participants, at least in its early stages of development.
According to the social network, RLUSD could be initially restricted to institutional participants as part of a strategy to mitigate risks associated with stablecoins, which have been criticized for their lack of transparency and possible use in illicit activities. Schwartz compared access to RLUSD to that of other stablecoins that have also implemented barriers for individual users.
As reported by this media, Ripple, one of the most influential companies in the cryptocurrency ecosystem, is about to launch its long-awaited stablecoin RLUSD, linked to the value of the US dollar. However, despite the prospects that this development has raised in the crypto community, Schwartz's recent statements are sparking an intense debate about the possible limitations of access to this stablecoin.
Ripple's RLUSD: An Institution-Only Stablecoin?
The decision to limit access to RLUSD in its early stages, as noted by Schwartz in X when responding to the concerns Analyst Khaled Elawadi's post on the risks of stablecoins has generated a mixed reaction in the crypto community.
Some, like the analyst, suggest that this strategy could be beneficial in establishing a solid and reliable foundation for the future stablecoin, while others argue that it could alienate individual users looking to participate in the DeFi ecosystem.
As the cryptocurrency market continues to evolve, the inclusion of individual users is crucial to the growth and adoption of new technologies.
The crypto community has expressed concerns about the inclusion of individual RLUSD users and the security of this stablecoin, especially given the context of other such coins that have faced issues. Schwartz, in his statement, attempted to downplay these concerns, stating that, although adjustments could occur in the initial testing phases, manipulation is not anticipated in the massive use of the stablecoin. However, confidence in RLUSD will largely depend on the transparency and audits that Ripple has promised to carry out monthly through third parties.
The lack of trust in other stablecoins, such as Tether, has led many in the community to question whether Ripple can offer a more secure alternative.
Ripple's vision for the future of the DeFi ecosystem
The launch of RLUSD represents a significant expansion for Ripple into the institutional sector and the decentralized finance ecosystem. The stablecoin, which will be pegged 1:1 to the US dollar and backed by safe assets, has the potential to become a key component in financial transactions in the digital ecosystem. However, the decision to restrict its initial access could limit its adoption and use in the market.
Ripple has indicated that RLUSD is being tested in a private beta both on the XRP Ledger and the Ethereum mainnet. These tests are essential to ensure that the stablecoin is functioning properly before its official launch, which is subject to regulatory approval from federal agencies.
Ripple CEO Brad Garlinghouse stated last week that the launch of RLUSD is close, suggesting that the company could soon receive regulatory approval to launch its long-awaited stablecoin and strategically position itself in this market with a reliable payment option for users and financial institutions participating in the blockchain.
