Ripple’s Stablecoin RLUSD Targets All Investors, Including Retail

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A validator for the XRP Ledger, known as Vet, has dismissed claims that Ripple’s stablecoin, RLUSD, is exclusive to institutional investors. In a post on X (formerly Twitter), Vet clarified that RLUSD is designed for both institutions and retail investors. He emphasized that for Ripple to build a robust ecosystem, broad adoption is essential, requiring participation from both retail and institutional users to maximize the stablecoin’s utility.

#RLUSD is for everyone!

There is no such thing as "not meant for retail", for a compelling ecosystem you need institutions AND retail.

Institutions on ramp with RLUSD to the XRP Ledger and distribute it via CEX, AMMs etc to retail and other institutions.

Good post by WK 🫡 https://t.co/z7JwJnDpUU
— Vet 🏴‍☠️ (@Vet_X0) September 14, 2024

Institutions Key to RLUSD Distribution

Vet explained that institutions will play a crucial role in distributing RLUSD, helping facilitate its widespread adoption. These institutions will receive RLUSD directly from the XRP Ledger and then distribute it to other users, including retail traders.

Traditionally, retail traders and some institutions cannot access stablecoins directly, as assets pegged to the U.S. dollar are usually minted in treasuries and initially provided to institutions. These institutions then distribute the stablecoins to other institutions and exchanges, from where retail traders can access them.

Vet highlighted that retail traders will be able to acquire RLUSD through exchanges and automated market makers (AMMs), enabling broader use of the stablecoin in cross-border payments and enhancing liquidity on the XRP Ledger.

Retail Traders Essential for RLUSD’s Success

Vet’s comments align with XRP community member WrathofKahneman, who argued that RLUSD’s success relies on retail participation. He noted that Ripple’s On-Demand Liquidity (ODL) needs retail traders for cross-border transactions.

The confusion over RLUSD being exclusive to institutions originated from Ripple’s Chief Technology Officer, David Schwartz. Schwartz compared RLUSD to other stablecoins like USDT and USDC, stating that institutions access these stablecoins directly, while retail users obtain them through exchanges.

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RLUSD is currently in beta testing on the XRPL mainnet and the Ethereum network. While some speculate it may replace XRP as a bridge asset, Schwartz clarified that RLUSD will complement XRP, offering users more options for transactions.