Ripple made waves earlier this year when it revealed that it would introduce a stablecoin pegged to the American dollar.

At the time, CEO Brad Garlinghouse stated that the product would bridge traditional finance and the cryptocurrency industry.

Ripple's team has yet to provide an exact date for the stablecoin's official release. However, they explained that it will be available on the XRP Ledger and Ethereum and should go live before the end of 2024.

The team also revealed that the stablecoin will be called Ripple USD (ticker RLUSD).

Most recently, the product was added to the company's official website, meaning its launch could be just around the corner. 'Ripple USD (RLUSD) is designed to maintain a constant value of one US dollar.

Issued on the XRP Ledger and Ethereum blockchains, ' Ripple USD' will be fully backed by a segregated reserve of cash and cash equivalents and redeemable 1:1 for US dollars,' the section reads.

SEC's Criticism

The upcoming stablecoin has already become controversial, receiving criticism from the US Securities and Exchange Commission (SEC). Several months ago, the regulator labeled it an 'unregistered crypto asset.'

This is not the first confrontation between Ripple and the SEC. In December 2020, the agency sued the firm, accusing it and some of its executives of illegally raising more than $1.3 billion by selling XRP in an unregistered security offering.

Ongoing Legal Battle

The legal battle passed through multiple developments in the following years, becoming one of the hottest topics in the crypto space. It reached its trial stage in April 2024, meaning a resolution could be announced anytime.

Some industry participants view the SEC as the underdog in the dispute, pointing to Ripple's three partial court wins secured throughout 2023. XRP's price reacted positively to each of those, and it will be interesting to see how it performs once the case is officially closed.