Kraken Exchange Launches Real Living US Dollar (RLUSD) Trading
Kraken Welcomes Ripple's Stablecoin, RLUSD, to the Trading Platform
Kraken has joined the bandwagon of exchanges offering Ripple's stablecoin, RLUSD, expanding its user base since its New York regulatory approval in late 2024. Issued on both the XRP Ledger and Ethereum, this digital dollar asset has amassed a significant following and has neared a quarter-billion dollar market cap.
The stablecoin's design caters to the needs of financial institutions and international payment providers, differentiating it from stablecoins targeted at retail users. Ripple boasts that RLUSD is already being utilized by firms like BKK Forex and iSend to manage cross-border treasury flows efficiently.
Jack McDonald, the head of Ripple's stablecoin division, highlighted the coin's rapid growth, impressively outpacing their internal projections. Moreover, RLUSD is increasingly finding applications as collateral in both crypto and traditional markets, with new exchanges listing it continually, and NGOs exploring the potential for simplified charitable giving through stablecoins.
With support from both Ethereum and the XRP Ledger networks, RLUSD aims to offer adaptability for developers and businesses. Its presence on multiple blockchains amplifies accessibility and integration potential across various financial services and payment systems.
Kraken recently withdrew USDT spot trading pairs under the Markets in Crypto-Assets Regulation (MiCA) within the European Economic Area.
RLUSD, unlike many stablecoins solely built for retail usage, is galvanized by trust, compliance, and transparency. Its integration into Ripple Payments, Ripple's flagship cross-border payments solution, amplifies speed, efficiency, and scalability while reducing costs. This integration significantly benefits institutions, corporations, and cross-border payment providers.
In response to growing market demand, RLUSD has been embraced by firms who value its 1:1 peg to the U.S. dollar, solid backing by U.S. dollars, short-term Treasury securities, and cash equivalents, and its deployment across two major blockchain networks. The stablecoin's innovative feature, a 'clawback' mechanism on the XRP Ledger, adds an extra layer of control and security for institutional users endeavoring to prevent fraud and maintain compliance.
RLUSD serves as a crucial link in Ripple's vision for swift, compliant, and economical cross-border payments, offering a stable medium of exchange that melds seamlessly with the XRP Ledger. XRP, meanwhile, acts as a bridge currency, optimizing liquidity and cross-asset transaction settlement, distinct from RLUSD with its counterparty-risk-free and freeze/clawback-immune attributes. Together, these two elements create a formidable combination for the future of international commerce.
- Kraken's addition of Ripple's stablecoin, RLUSD, to its trading platform demonstrates a growing interest in finance technology, as RLUSD is designed for use by financial institutions and international payment providers.
- The integration of RLUSD into Kraken's platform also showcases the potential of technology in the finance sector, as RLUSD aims to offer adaptability for developers and businesses, and its presence on multiple blockchains amplifies accessibility and integration potential across various financial services and payment systems.
