Ripple CTO Warns: RLUSD Stablecoin Is Not a Profit Opportunity

Ripple is gearing up to launch its new stablecoin, Ripple USD (RLUSD), but Chief Technology Officer David Schwartz has cautioned investors against expecting profits from the dollar-pegged asset.

He stressed that stablecoins are designed for price stability, not speculative gains.

Schwartz revealed that demand for RLUSD could outpace supply during its initial rollout, leading to unusual market activity. For example, he noted that one user appeared ready to pay an exorbitant $1,200 for a fraction of an RLUSD token on a decentralized exchange (DEX). While this may reflect enthusiasm to secure the first transaction, he clarified that such inflated valuations are unlikely to last.

The Ripple CTO reassured that RLUSD’s price would normalize near $1 once the market adjusts to sufficient supply levels. “Early adopters might spend extra for a token initially, but these prices will quickly return to the stablecoin’s intended value,” he explained.

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Schwartz also addressed potential short-term price fluctuations, attributing them to launch-related supply and demand imbalances. However, he emphasized that arbitrage mechanisms would rapidly stabilize the market. “Don’t fall into the trap of thinking a stablecoin is an investment opportunity—it’s designed to hold steady value, not deliver profits,” he said.

Ripple’s RLUSD is set to go live on Tuesday after receiving regulatory approval from the New York Department of Financial Services (NYDFS). The launch marks a significant step for the company as it expands its stablecoin offerings.

Kosta Gushterov