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Ripple's CTO has revealed that its stablecoin, RLUSD, will be restricted to institutions only while the firm's co-founder has expressed support for Kamala Harris.
Responding on X with a social media user who suggested RLUSD should be limited to large financial institutions to protect the stablecoin from illegal activities including money laundering, CTO David Schwartz said RLUSD will be for institutions only.
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"Is it possible #RLUSD would only be available, at least initially, to institutions and not crypto retail? The reason why I suggest this is to insulate RLUSD from those that use Tether for money laundering and the effects of its eventual collapse," the X user questioned.
"It will probably only ever be available directly to institutions. Can you get USDC from Circle or USDT from Tether, because I can't," Schwartz replied.
It will probably only ever be available directly to institutions. Can you get USDC from Circle or USDT from Tether, because I can't.
— David "JoelKatz" Schwartz (@JoelKatz) September 8, 2024
Schwartz's remarks follow comments from CEO Brad Garlinghouse, who said RLUSD could be launched sooner rather than later.
"We will certainly launch soon. Weeks, not months," Garlinghouse said during Korea Blockchain Week. "It's called Ripple USD. RLUSD has been minted in that framework."
Ripple began beta testing RLUSD on the XRP Ledger (XRPL) and the Ethereum mainnet last month.
Meanwhile, Ripple co-founder Chris Larsen has formally backed Harris in the 2024 US presidential race.
Larsen joined 88 other executives including 21st Century Fox CEO James Murdoch and Snap chairman Michael Lynton in a joint letter, which said, “The best way to support the continued strength, security, and reliability of our democracy and economy” is by electing Harris as president.
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Harris would “continue to advance fair and predictable policies that support the rule of law, stability, and a sound business environment” if she were president, the letter said.
According to CNBC, the letter's purpose is not to sway public opinion but to demonstrate political support for Harris ahead of the first presidential debate.
Under Joe Biden's regime, Garlinghouse has been a staunch critic of SEC Chair Gary Gensler and even hinted that the firm could IPO outside the US as long as Gensler is at the SEC helm.
"Gary Gensler is the chair of the US SEC," Garlinghouse said at Consensus in June. "I'm not really popular in the offices of the SEC. Going public for Ripple right now does not make any sense."
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