Ripple announced that its stablecoin RLUSD had gone live on multiple exchanges throughout the world. RLUSD launched on both XRP ledger and Ethereum blockchain to ensure its broad accessibility and interoperability. The coin is said to be backed by USD deposits, US treasuries, and cash equivalents to make it stable, reliable, and liquid. To enhance the transparency of the coin Ripple will be publishing monthly, third-party attestations of RUSLD’s reserve asset conducted by an independent auditing firm.
Ripple CTO David Schwartz warned the community about the temporary price volatility caused by the potential supply shortages in the early days of RLUSD. He promised the users about the faster stabilization of prices due to any short-term deviations. RLUSD’s arbitrage mechanisms will bring the value back to $1peg. He emphasized that stablecoin intends to maintain price stability and act as a warning against irrational speculative behavior.
RLUSD token is designed for financial applications. RLUSD can be used for settling cross-border payments and provides liquidity for treasury operations and remittances along with its integration to decentralized finance protocols. It simplifies the entry and exit barrier in digital assets as well as acts as a bridge between the fiat and crypto ecosystem.
It can be used to collateralize trading of tokenized realm world assets such as commodities, securities, and treasuries on-chain. From the next year onwards RLUSD will be used by Ripple to process global payments for enterprise clients. The launch of RLUSD is gaining traction on business media outlets such as Fox Business and NYSE TV.
Moreover, two prominent industry leaders joined the Ripple project they are Reguram Rajan (former governor of Reserve Bank of India) and Kenneth Montgomery(chief operating officer of Federal Reserve Bank of Boston).
RLUSD Approval and Compliance Efforts
Ripple RLUSD stable coin received approval from the New York Department of Financial Services in December 2024. RLUSD will be released by the New York Trust Company Charter. The stablecoin was initially portrayed as a competitor to the major stablecoins in the market Eg Tether USD and Circle USDC. After the first announcement in April, the token started its testing phase in August. Ripple partnered with different exchanges including Uphold, Bitstamp, and Bitso along with liquidity providers such as B2C2 and Keyrock for the release of stablecoin
Effect of RLUSD on XRP
Since the announcement of the RLUSD launch the price of XRP has risen and it is currently trading at $2.52.There has been a price surge of 0.44% in the XRP value in the last 24 hours. The market capitalization reached $143.85 B. Thus XRP became the third biggest crypto after Bitcoin and Ethereum. The trading volume witnessed a surge of 87% and reached 12.49 billion. This surge can be considered as the investor’s enthusiasm created around the RLUSD stablecoin launch.
RLUSD’s expected impact on crypto transactions?
Ripple plans to transform cross-border transactions using cryptocurrency. The project plans to dominate the stablecoin sector by challenging the superior coins like USDC and USDT. The token is live from December 17 Tuesday with listings on different crypto exchanges. This news has stimulated the whales and investors on the network. The trading volume of XRP raised in the platform. It is important to note that whales have purchased 830 million XRP in the past 24 hours. It is expected that the release of Ripple stablecoin might push the price of XRP to reach $3 or higher.
Price Determiners of RLUSD
Multiple factors could determine the price traction of RLUSD. The market demand and the supply dynamic could contribute to its price traction. The approval from the NYDS has increased the credibility and authenticity. This could enhance investor confidence.
The overall market sentiments can greatly contribute to the establishment of RLUSD. As RLUSD is closely associated with XRP, any price fluctuations in XRP can impact the value of RLUSD. There are some of the complex factors that could determine the future of this innovative stablecoin.
Final Thoughts
Ripple RLUSD is the next step in accomplishing the vision to create a more efficient and inclusive financial ecosystem. The stability feature of a fiat-backed digital asset combined with Ripple’s extensive regulatory experience. In the evolution of Ripple’s blockchain-based products, RLUSD is expected to play a significant role in the evolution of digital payments, enterprise finance, etc.
As the crypto landscape is inherently volatile, accurate predictions about any crypto project are nearly impossible. It is mandatory to have your facts checked before investing your capital in any project.
