Ripple Confirms RLUSD Will Target Institutions First

• Ripple’s RLUSD stablecoin will initially be available only to institutions, with retail access through intermediaries later.
• The XRP Ledger’s $1 trillion trust line for RLUSD reflects Ripple’s focus on scalability and user trust.

Ripple’s widely anticipated RLUSD stablecoin is gaining traction as it approaches its formal introduction. However, retail investors hoping to get their hands on the token may be disappointed.

According to Ripple’s CTO, David Schwartz, RLUSD would most likely only be supplied directly to institutions, following the approach of other large stablecoins such as USDC and USDT.

Retail consumers who were hoping for a more direct way to obtain RLUSD will most likely have to rely on intermediaries and exchanges once the stablecoin reaches general circulation.

It will probably only ever be available directly to institutions. Can you get USDC from Circle or USDT from Tether, because I can't.

— David "JoelKatz" Schwartz (@JoelKatz) September 8, 2024

RLUSD Institutional Focus to Mitigate Regulatory Risks 

This step is consistent with Ripple’s conservative approach to minimizing regulatory risks and ensuring compliance, notably with anti-money laundering (AML) standards.

Ripple aims to create a secure and controlled launch environment by limiting initial availability to institutional clients, hence reducing potential regulatory difficulties.

For example, Tether and Circle, two leading competitors in the stablecoin sector, have prioritized institutional access before making their stablecoins available to the general public. Ripple appears to be taking a similar approach, however, some in the crypto world have voiced disappointment, expecting a more direct choice for individual investors.

Furthermore, Ripple has shown a commitment to rigorous testing prior to the public release of RLUSD. CNF previously revealed that Ripple had burnt 185 RLUSD tokens during a private beta test, leaving none in circulation.

This burn occurred as part of the testing protocols, indicating Ripple’s intention to maintain complete control over the stablecoin’s supply until it is ready for wider distribution.

Additionally, the XRP Ledger’s $1 trillion trust line for RLUSD indicates both its scalability and users’ trust in Ripple’s blockchain technology. The high trust limit demonstrates Ripple’s desire to establish RLUSD as a dependable and secure stablecoin for large-scale institutional use.