Key Insights
- Ripple to launch USD-pegged stablecoin (RLUSD) within weeks, currently in private beta.
- CEO Brad Garlinghouse rules out U.S. IPO due to SEC’s hostile stance towards crypto.
- Garlinghouse predicts SEC leadership change post-election and expresses optimism about crypto’s future.
SEOUL (MarketsXplora) – Ripple, the blockchain-based payments firm, is on the verge of launching its U.S. dollar-pegged stablecoin within weeks, CEO Brad Garlinghouse announced during a fireside chat at Korea Blockchain Week in Seoul on Wednesday.
The stablecoin, named Ripple USD (RLUSD), is currently undergoing private beta testing on two blockchain networks.
“We’re very close,” Garlinghouse said. “We will certainly launch soon. Weeks, not months.”
Ripple’s move into the stablecoin market comes as the firm sees an opportunity following the depegging incident of USDC 18 months ago. The new offering is designed to complement Ripple’s XRP token and cater to financial institutions already working with the company.
Garlinghouse rules out U.S. IPO plans
In a wide-ranging discussion, Garlinghouse also addressed the possibility of a public listing, stating he has “no interest” in Ripple going public in the United States. He cited the Securities and Exchange Commission’s (SEC) “pretty hostile” stance towards the crypto industry as the primary reason.
“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,” Garlinghouse remarked.
The Ripple CEO predicted a change in SEC leadership regardless of the outcome of the upcoming U.S. presidential election. He criticized current SEC Chair Gary Gensler, saying,
“I think [Gensler] really has hurt his party. He’s a Democrat, and I think it’s hurt them in the current election cycle.”
Reflecting on Ripple’s recent legal victory against the SEC, which resulted in a $125 million fine instead of the regulator’s proposed $2 billion, Garlinghouse said,
“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.”
Garlinghouse also commented on the SEC’s recent enforcement action against NFT marketplace OpenSea, calling it “unfortunate” and predicting the regulator has “a losing case” in treating NFTs as securities.
Despite regulatory challenges, the Ripple CEO expressed optimism about the next five years in the crypto industry. He pointed to potential legislative clarity through initiatives like the Financial Innovation and Technology for the 21st Century Act (FIT 21) as a positive development for the sector.
Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, he captivates readers with captivating storytelling and delivers insightful market analysis.