Ripple CTO David Schwartz has cautioned investors about potential supply shortages for RLUSD, the company’s new stablecoin pegged to the U.S. dollar. Speaking on Nov. 21, Schwartz explained that the rollout of RLUSD is designed to be gradual, ensuring liquidity and market stability. He urged the community to avoid fear-of-missing-out (FOMO) behavior, which could lead to unnecessary market volatility during the stablecoin’s early adoption phase.
RLUSD, launched as part of Ripple’s growing portfolio of blockchain-based financial products, aims to facilitate cross-border payments and decentralized finance (DeFi) applications. Schwartz emphasized that the limited initial supply is a strategic decision to monitor market dynamics and ensure compliance with regulatory standards. “The gradual rollout is critical to ensuring RLUSD functions as intended without disruption,” he stated.
The CTO also addressed concerns about the stablecoin’s availability, assuring users that Ripple plans to increase the supply in response to market demand. Schwartz highlighted that RLUSD’s adoption will depend on its utility and integration within RippleNet’s ecosystem, rather than speculative trading. The company is focused on building sustainable use cases for the stablecoin in payment corridors and DeFi protocols.
This announcement comes amid heightened interest in stablecoins as key components of the digital asset economy. Ripple’s cautious approach reflects the industry’s increasing emphasis on regulatory compliance and market stability. Analysts believe that RLUSD’s success could strengthen Ripple’s position as a leader in blockchain-based payment solutions while setting a benchmark for responsible stablecoin launches.
