Ripple has recently submitted a trademark application for the phrase “RLUSD,” which is believed to be the intended symbol for its upcoming stablecoin tied to the US dollar. The application was filed with Justia, a US legal database, on May 7. Although Ripple has not made an official announcement, members of the crypto community speculate that this move is in relation to the stablecoin that the company plans to launch in 2024.
The filing of the trademark application further solidifies the assumption that RLUSD will be the ticker symbol for Ripple’s forthcoming stablecoin. The application specifies that RLUSD will be used for electronic financial services, particularly for transactions involving the receiving and distribution of payments in virtual currency. This encompasses digital tokens that are pegged to a fiat currency and carried out over a computer network, essentially referring to a stablecoin.
However, the selection of “RLUSD” as the symbol has sparked various opinions among community members. Some have criticized the choice, deeming it “terrible,” and suggesting that alternatives like USDX or USDR would have been better. Critics argue that USDX and USDR would potentially be more appealing to retail consumers than RLUSD.
The preference for the name “USDR” is mainly due to the initial “R” in Ripple’s name, while the expectation for “USDX” arises from Ripple’s plan to launch the stablecoin on the XRP Ledger. However, the Flare Networks team recently introduced “USDX” as their native stablecoin on their blockchain, backed 1:1 with USD and secured by Hex Trust, a top-tier institutional custodian for digital assets. This development indicates that the USDX designation is not an option for Ripple’s stablecoin initiative.
Similarly, “USDR” is already in use by Real USD, making it unavailable for Ripple’s use. With both USDX and USDR taken, it is likely that this situation influenced Ripple’s decision to settle on RLUSD for its stablecoin project.
Ripple announced its shift towards stablecoin in early April, aiming to capture a significant portion of the market, which is projected to reach a valuation close to $3 trillion in the coming years (currently at $161 billion). The filing of the trademark application aligns with the behind-the-scenes efforts to ensure a successful launch of the stablecoin later this year.
Disclaimer: This content is for informational purposes only and should not be considered as financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.