Ripple’s RLUSD stablecoin reiterates its plan to be a major player in the global remittance market. By using lockchain technology for efficiency and maintaining a stable value similar to traditional money, RLUSD aims to enhance remittances, particularly in areas where traditional banking services are lacking.
RLUSD to Compete in $685B Remittance Market
In a recent blog post, Ripple reaffirmed its plans to be a significant force in the rapidly growing $685 billion stablecoin remittance market. Ripple launched RLUSD to address longstanding pain points in cross-border payments, slow settlement, hidden fees, and limited access.
Ripple explains in the post that, unlike traditional transfers that depend on banks and middlemen, RLUSD uses blockchain technology for direct transfers. It lowers costs, removes extra foreign exchange fees, and offers better transparency through on-chain verification.
With traditional transfers, fees can be around 6.4% plus foreign exchange charges. In contrast, RLUSD allows for more affordable and direct transfers. Additionally, RLUSD payments are fully trackable on blockchain, while older systems offer limited tracking.
Ripple explained that RLUSD keeps a stable value by being linked to the US dollar. This stability helps in places where inflation or currency changes can create problems. People can buy RLUSD using digital wallets or exchanges and send it straight to recipients in other countries. Recipients can hold, spend, or cash out their RLUSD locally, all within minutes instead of days.
Ripple’s Roadmap: Real-World Impact and Future Plans
Ripple is not just focusing on remittances. Its RLUSD stablecoin is also part of a $25 million initiative to help nonprofits distribute funds quickly and transparently. This approach could also be used for payroll, disaster relief, or global aid.
Notably, RLUSD is leading the way in speeding up cross-border transfers and making currency exchanges easier. Major payment companies like Visa are now offering stablecoins, which shows that they trust this market more.
Moreover, Ripple’s RLUSD stablecoin is widely used, not just where it started. A significant milestone for Ripple is receiving approval from the DFSA for RLUSD. This approval means RLUSD can now be used in the DIFC, a significant financial hub recognized for its support of tech innovation.
Meanwhile, in the United States, lawmakers are about to pass the GENIUS Act, which will create rules for stablecoins and other digital assets. These changes will help it stand out as a compliant and globally scalable stablecoin. This shows how Ripple aims to be a key player in the $685 stablecoin remittance market.
Coingape Staff
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