The XRP community is currently abuzz with speculation regarding the imminent release of Ripple’s stablecoin, RLUSD. Contrary to widespread rumors, Vet (@Vet_X0), a recognized XRPL dUNL validator and co-founder of the leading NFT marketplace on the XRP Ledger “xrp.cafe,” has clarified that the RLUSD will not be fully functional on the XRPL this year.
Technical Constraints Hindering RLUSD’s Full Functionality
In a detailed post on X, Vet explains the technical constraints: “Expectation management! RLUSD will either only launch on ETH this year, or they will launch also on the XRPL but without the ability to be used in the AMM on the XRP Ledger initially, but with the DEX orderbook. I expect, or rather hope, for the latter.”
Vet further elaborated on the reasons, pointing to the ‘clawback’ feature enabled on RLUSD, which the XRP Ledger currently does not support in its Automated Market Maker (AMM). “RLUSD is a stablecoin with clawback settings enabled. Tokens with this setting are denied by the XRP Ledger to be used in the AMM. There are amendments in the works to help solve this,” Vet added.
Upcoming Amendments and Their Impact
Vet highlighted two key amendments designed to address these issues: XLS-73 AMM Clawback and XLS-77. These amendments aim to enhance control over trustlines and restrict the transferability of RLUSD under certain conditions. Specifically, XLS-73 seeks to modify the AMM system to accommodate assets with clawback features, while XLS-77 is intended to allow for a more comprehensive freeze of trustlines, further securing the network against misuse by blacklisted accounts.
“In other words, because the XRPL is decentralized, these amendments are impossible to predict when they will come, especially given the fatigue I observed. I love seeing people be excited about things happening on-chain via the tracker I made, educating themselves on trustlines and IOUs on the XRPL is exactly where I want attention to go to, as opposed to screenshots of articles, partnerships and secret committee hot air talk,” Vet concluded.
Ripple CTO Weighs In
Notably, Ripple Chief Technology Officer (CTO) David “JoelKatz” Schwartz did not dispute Vet’s overall assessment but did provide a clarification on a specific technical point in Vet’s explanation. In a commentary on X, Schwartz noted: “FWIW, I’m not sure I like the description of XLS-77 as a ‘deeper’ freeze. If anything, it’s less deep. Unless I’m missing something, in any case where XLS-77 makes a difference, an asset that would have been frozen is, instead, not frozen.”
Vet responded to Schwartz’s critique by refining his terminology, acknowledging the complexity of the terms and their implications across the XRPL infrastructure: “Good point…hmmm…in my mind it made sense because the freeze goes beyond the trustline, it includes the payment engine and dex – maybe that’s why ‘deep.’”
Community Clarifications
Daniel Keller, another well-known figure within the XRP community, sought further clarification on whether the core statement about the Ripple stablecoin is pure speculation or a fact. Vet confirmed the technical barriers: “Confirmed by the XRP Ledger that it’s not possible. Unconfirmed what way they will go, only ETH or ETH and XRPL but with the AMM restrictions.”
At press time, XRP traded at $0.6344.
