Blockchain company Ripple is releasing its own long-awaited stablecoin tomorrow after receiving Bitcoin. RLUSD is backed 1:1 by the U.S. dollar, meaning the company has promised to hold an equivalent sum of dollars in a reserve to collateralize each stablecoin that it issues.
McDonald says that RLUSD will appeal to people who are interested in digital assets but might be averse to the volatile nature of most cryptocurrencies. “Stablecoins are a bit of a hybrid situation, where it walks and talks a lot like a U.S. dollar, but by its nature, is nowhere near as volatile as cryptocurrencies are,” he said.
