đ Breaking Down RLUSD: Institutional or Retail Stablecoin?
There's been a lot of talk around RLUSDâRippleâs USD-backed stablecoinâso let's clear up the confusion on whether itâs strictly for institutions or if retail can use it too.
đ What is RLUSD?
RLUSD is Rippleâs stablecoin, primarily aimed at institutional use. However, like USDT, it will be available to retail traders through exchanges, even though it wonât be sold directly to them by Rippleâsimilar to how Tether works.
đĄ Wholesale or Retail?
Some argue RLUSD is a wholesale CBDC, but Rippleâs announcement indicated it would be part of regular payments. This makes it more likely a retail stablecoin, as institutions buy it and resell to retail, like other stablecoins.
đ Impact on XRP
RLUSD isnât expected to pump XRP directly, but it could boost activity on the XRP Ledger, potentially increasing attention to XRP. However, unlike ETH, XRP isnât burned to secure transactions.
đȘ Supply and Demand
Ripple will initially mint 1 billion RLUSD. If institutional demand exceeds this supply, theyâll mint more based on market needâkeeping the price stable at $1.
đ€ Challenges for RLUSD
A key issue is that CEXs might not aggressively promote RLUSD, as it doesnât offer much over existing stablecoins like USDT or USDC.
â ïž Remember: DYOR (Do Your Own Research) before making any financial decisions! đ
