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David Schwartz, CTO at Ripple, expects the company’s new RLUSD stablecoin to experience an initial shortage and price volatility. Some investors have offered to pay significantly more than the coin’s $1 value, but Schwartz has assured that prices will normalize when the market settles. The RLUSD has received approval from the New York Department of Financial Services, and Ripple plans to pair it with its original cryptocurrency, XRP, as part of its international payment solution. Ripple believes the pairing will improve liquidity for RLUSD and maintain its price stability.

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David Schwartz, the tech boss at Ripple, reckons their new RLUSD stablecoin might be in short supply initially. But he’s telling investors not to panic buy.

He tweeted on December 15, suggesting there might be some pretty dramatic price swings when RLUSD first hits the market. This is despite the fact that it’s meant to have a stable value, directly linked to the US dollar.

Schwartz clocked some early bids for the yet-to-be released stablecoin that were way above its actual value. A post revealed that 1 RLUSD was being valued at the equivalent of $1,244, way more than the $1 it should be. Schwartz pointed out someone was ready to pay over a grand for a minuscule amount of RLUSD.

He guessed they just wanted bragging rights for buying the first bit of RLUSD to hit the market. But he reassured everyone that the price will definitely drop back to around $1 when things settle down. If not, he said, that means something’s gone seriously wrong and warned people not to panic buy the stablecoin, reminding them it’s not a get-rich-quick scheme.

The New York Department of Financial Services gave RLUSD the thumbs up on December 11. Ripple’s CEO, Brad Garlinghouse, announced this, and tweeted that they’re getting ready to launch the stablecoin soon.

Once RLUSD is live, Ripple’s plan is to pair it with XRP, their original cryptocurrency, and use them both in their international payment solution for customers around the world. Monica Long, Ripple’s president, has said that RLUSD was created to compliment XRP.

According to inside sources, Ripple reckons RLUSD will be good for XRP because they’ll be linked together. XRP’s wide availability should help provide liquidity for RLUSD, and linking the two should help maintain the stablecoin’s price. Garlinghouse has said the company’s main focus with RLUSD will be big financial institutions.