Ripple’s Chief Technology Officer, David Schwartz, warned of potential volatility for the RippleUSD (RLUSD) stablecoin following its launch and advised against FOMO.

As RLUSD goes live, there may be supply shortages in the very early days before the market stabilizes. There actually is someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD. Tools will show you the highest price anyone is willing to pay, even if it's just for a… https://t.co/LOx4rGiiiJ
— David "JoelKatz" Schwartz (@JoelKatz) December 15, 2024

Schwartz suggested that initial “large orders” might create a temporary shortage of the token, but he assured that its price would eventually return to parity with the US dollar.

He also addressed reports of a user, known as Xaman, who expressed willingness to spend 511 XRP (~$1,244) to purchase the first RLUSD on a decentralized exchange (DEX).

WOW! 💥

XAMAN SHOWS 1 RLUSD = 511 #XRP 👀 pic.twitter.com/1dBodfNnFp
— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) December 11, 2024

“The price won’t stay above $1 once the market stabilizes, which will happen very quickly thanks to arbitrage traders. […] Please don’t FOMO into stablecoins. They’re not a get-rich-quick opportunity,” Schwartz emphasized.

Axelar co-founder Georgios Vlachos told Cointelegraph that RLUSD’s launch in 2025 could boost demand for XRP, as transactions and remittances would occur on the XRP Ledger (XRPL) and the XRP-EVM sidechain.

“XRP holders will benefit because a small amount of tokens is burned each time a transaction occurs,” he explained.

On December 3, XRP hit a multi-year high of $2.909 amid increased whale activity. As of writing, the price is $2.4, with a market capitalization of $137.39 billion.

On December 10, the New York Department of Financial Services approved RLUSD for trading. Supported platforms include Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Liquidity will be provided by market makers B2C2 and Keyrock.

Ripple began testing RLUSD in April. According to Ripple CEO Brad Garlinghouse, the stablecoin—suitable for payments, RWA, and DeFi—will become the “gold standard for the corporate sector.”

Ripple has also clarified that it will not abandon XRP. Both assets are set to play a role in international payments.