This Leading Crypto Exchange Embraces Ripple’s Stablecoin: Details

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TL;DR

  • Since its launch, RLUSD has been adopted by many leading cryptocurrency exchanges and some of which highlighted its use cases.
  • The latest to jump on the bandwagon is the European-based Bitstamp.

The Next to Join the Pack

Last December, the Ripple-backed stablecoin RLUSD made its debut in the middle of the month. A number of digital currency platforms welcomed this new product upon release, such as Uphold, Bitso, Moonpay, CoinMENA, and additional exchanges.

Previously this week, Ripple’s president, Monica Long, indicated that other prominent platforms might soon follow a trend. Not long after, the exchange platform Bitstamp based in Luxembourg added its name to the list of potential adopters.

It integrated RLUSD onto the Ethereum network, positioning the stablecoin as a robust, institution-focused financial solution. Furthermore, it emphasized that this product maintains a 1:1 parity with the US dollar, ensuring consistent value for payments, tokenization, and other applications.

The specific cryptocurrency pairs that Bitstamp users can trade include Ripple (RLUSD) paired with USD, EUR, USDT, Bitcoin (BTC), Ethereum (ETH), and XRP.

It’s worth pointing out that the company has advised caution when handling the stablecoin, as it carries significant risk and might not be appropriate for every investor.

“Don’t invest unless you’re prepared to lose all the money you invest,” it added.

The Initial Volatility

Initially after being established, the Regional Local Utilization Stable Dollar (RLUSD) was intended to maintain a stable value equivalent to the U.S. dollar, or “greenback.” Yet, during its early stages, its value deviated significantly, ranging from $0.96 to $1.06 according to CoinGecko’s data.

A day before its formal release, Ripple’s Chief Technology Officer, David Schwartz, cautioned about the possibility of increased volatility due to speculative trading or individuals eager to buy the initial fraction of RLUSD on decentralized exchanges at unusually high rates.

The executive emphasized that RLUSD should ideally stabilize near $1. If it doesn’t, he warned, “there may be a significant problem.” Moreover, he cautioned against rushing to invest in this stablecoin as it’s not a chance to amass wealth.

Based on its price history, RLUSD has managed to stabilize and is currently trading near $1, a level it has maintained since December 27.

 

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2025-01-09 16:22