Ripple’s long-awaited U.S. dollar-backed stablecoin, RLUSD, has finally received regulatory approval from the New York Department of Financial Services (NYDFS). This landmark achievement positions Ripple as a significant player in the stablecoin market. Announced by Ripple CEO Brad Garlinghouse on X, the news caused a 10% surge in XRP, Ripple’s native token.
This is a bold step into a market dominated by giants like Tether (USDT) and Circle (USDC).
Dive in as we explore the ripple effects of this major milestone.
RLUSD is currently in beta testing on the Ethereum network and XRP Ledger (XRPL), with a circulating supply of $52 million. This stablecoin is pegged to short-term U.S. government bonds and aims to tap into the rapidly growing stablecoin market, which is currently dominated by Tether (USDT) and Circle (USDC). Ripple’s entry into this market is part of its strategy to become a leader in institutional payments and real-world asset tokenization.
The stablecoin market, valued at nearly $200 billion, is expected to grow exponentially in the coming years. Ripple plans to leverage RLUSD to expand its role in global payments while providing a bridge for traditional financial assets to operate on blockchain networks. Tokenization, the process of converting physical assets into digital tokens for faster and more efficient transactions, is a key focus for Ripple. RLUSD is positioned as a major player in this trend.
Want to stay ahead of the curve? Read our XRP price prediction and discover what the future holds for this rising cryptocurrency!
Vincent Van Code, a prominent crypto analyst, shed light on RLUSD’s market potential and XRP’s recent price movements. While XRP’s rise from $1.90 to $2.35 is impressive, Van Code highlighted that the surge is mainly driven by speculation for now. However, Ripple’s planned introduction of automated market makers (AMMs) and liquidity pools (LPs) could be pivotal.
These innovations promise up to 5% annual returns on-chain without counterparty risk, likely attracting institutional funds to the XRPL. Additionally, RLUSD staking on exchanges could lock up more XRP, increasing demand. Users might also swap USDT for RLUSD, transfer funds to self-custody wallets, and invest in LP tokens, potentially creating a feedback loop that further boosts XRP’s value.
In short, this isn’t just about today’s price pump; it’s about setting the stage for sustained growth. Van Code predicts RLUSD could double XRP demand and potentially shake up the market by February 2025.
However the present scenario is quite alarming, the crypto market is taking a big hit, with XRP dropping 12% to $2.07. This sharp fall reflects a tough day for many cryptocurrencies, as prices tumble across the board. Despite recent good news for Ripple, like its stablecoin approval, the market’s volatility shows no signs of slowing down.
Ripple’s journey with RLUSD is a testament to how far blockchain technology has come—and how much further it can go.
The RLUSD stablecoin by Ripple is expected to launch by the end of 2024, following its recent regulatory approval from the New York Department of Financial Services (NYDFS).
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