Ripple has provided further details about its upcoming stablecoin launch. In a recent announcement, the company disclosed that the stablecoin, named Ripple USD (RLUSD), will debut on both the XRP Ledger and the Ethereum blockchain later this year.

Ripple CEO Brad Garlinghouse referred to RLUSD as "Real USD" during the XRP Ledger Apex 2024 event this week.

RLUSD will maintain a 1:1 peg with the US dollar and will be fully backed by a combination of USD, short-term US Government bonds, and cash equivalents, as previously reported by Crypto Briefing.

Ripple aims to broaden its stablecoin offerings with RLUSD and plans to bolster support for decentralized finance (DeFi) applications, including automated market maker (AMM) exchanges, by providing a reliable asset solution.

The announcement follows Ripple's recent acquisition of Standard Custody and the appointment of its CEO, Jack McDonald, as Senior Vice President overseeing the stablecoin division.

Additionally, Ripple has selected Axelar’s interoperability platform for its XRPL EVM sidechain, citing Axelar’s user-friendly approach and robust security features as key factors in the decision, despite previously considering the XLS-38 bridge.

Despite these advancements, RLUSD has encountered regulatory challenges. In a legal filing in May, the US Securities and Exchange Commission (SEC) asserted that Ripple's proposed stablecoin constitutes an unregistered cryptocurrency. The SEC claims that RLUSD could potentially violate securities laws, reflecting ongoing regulatory scrutiny.