Ripple CTO David Schwartz has outlined how the company’s upcoming US dollar-pegged stablecoin, RLUSD, could initially trade at insanely high prices, possibly even $1,200, despite being designed to maintain a 1:1 parity with the US dollar.

He stressed early supply bottlenecks and speculative enthusiasm as key factors likely to cause any short-lived spike. Schwartz then warned investors against seeing the much-hyped token as an oppo...