Schwartz answered a subscriber’s question: will RLUSD be available only to legal entities? The subscriber’s argument: to protect the token from criminals who want to use it to launder money through cryptocurrencies, and to protect investors from a possible collapse of the asset. Schwartz confirmed the guess, writing on the X social network that RLUSD will only be available directly to organizations.
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
By restricting access to the new stablecoin, Ripple intends to tread carefully to avoid the regulatory pitfalls that have befallen other token issuers. For example, Tether, the company that issues USDT, has already come under scrutiny from U.S. regulators over issues related to the reserves that back USDT.
Another reason why RLUSD may not be able to get into the hands of retail investors is risk management. Retail investors may be vulnerable to crypto market fluctuations, so restricting access to RLUSD may prevent potential problems early on.
A few days ago, Ripple CEO Brad Garlinghouse announced that the Ripple USD stablecoin is already in its final beta testing phase on the XRP Ledger and Ethereum blockchains. The launch should take place not in a few months, as originally planned, but in a few weeks.
Source: Bits
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