Stablecoin Launch Approaches as CEO Dismisses IPO

Ripple’s RLUSD stablecoin aims to compete in the growing market, where USDT and USDC dominate and will complement Ripple’s native XRP token.
Brad Garlinghouse expressed disinterest in a U.S. IPO for Ripple due to regulatory challenges, criticizing the SEC’s inconsistent stance on crypto regulations.

While speaking at the Korea Blockchain Week in Seoul on Wednesday, September 4, Ripple CEO Brad Garlinghouse stated that the company is very close to launching its USD-pegged stablecoin RLUSD, as the blockchain firm eyes a share of the rapidly growing stablecoin market, reported CNF.

Garlinghouse noted:

We’re in a private kind of closed beta. It’s called Ripple USD. RLUSD has been minted in that framework. We will certainly launch soon. Weeks, not months.

Last month, in August, Ripple announced that it had already begun testing its USD-pegged stablecoin on two blockchain networks. Earlier in June, Ripple President Monica Long stated that the RLUSD stablecoin would complement Ripple’s native XRP token. The stablecoin market is currently led by USDT and USDC, with USDT representing approximately 70% of the total supply and USDC making up around 21%.

Garlinghouse also highlighted the issue of de-pegging in the existing stablecoins while adding the need to have more credible players in the market. “I mean, 18 months ago, USDC depegged and we felt like there was an opportunity for a credible player that’s already working with lots of financial institutions to lean into that market,” he said.

On the other hand, Ripple is also working to bring smart contracts and NFT features to the XRP Ledger by the end of the year, reported CNF.

Ripple CEO on US IPO and Post-Election Forecast

When asked about the initial public offering during a fireside chat, Garlinghouse stated that he has “no interest” in Ripple going public in the U.S. This is basically due to the company’s hostile relations with the Securities and Exchange Commission’s (SEC). Rewrite this in news format:

SEC approved Coinbase going public in the United States and now the SEC is suing Coinbase for the same things they approved. One of the first pieces of advice I give entrepreneurs who ask me about starting crypto companies is: don’t incorporate in the United States. You’re just asking for more legal bills.

Furthermore, commenting on the upcoming US Presidential elections, he said that it doesn’t matter which party comes to power. “I think no matter who wins the United States election, we’ll see new leadership in the U.S. SEC. I think [Gary Gensler] really has hurt his party. He’s a Democrat, and I think it’s hurt them in the current election cycle,” said Brad Garlinghouse.

Last month, the court asked Ripple to pay a $125 million fine, substantially less than the SEC’s proposed $2 billion, in the ongoing legal battle with the SEC. Since the court ruling on August 7, the SEC has 60 days to appeal the judgment, the chances of which seem less, reported Crypto News Flash.

Ripple and CEO Brad Garlinghouse hailed the decision as a victory for both the company and the broader industry, especially as the court had previously ruled that some of Ripple’s XRP sales did not breach securities laws. Galinghouse added:

There aren’t that many companies that actually can stand up to a bully. The SEC has a lot of power, and it takes a lot of money and a lot of conviction to fight that.