Ripple Launches RLUSD Stablecoin, Driving XRP Price Surge Higher

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Ripple Launches RLUSD Stablecoin, Driving XRP Price Surge Higher

Ripple USD (RLUSD), the highly anticipated stablecoin from blockchain-based payment solution provider Ripple, went live on December 17. 

RLUSD is the first digital asset designed for real-time global payment for which US dollar reserves ensure price stability and minimize volatility. This follows approval from the New York Department of Financial Services (NYDFS) and has frothed up the broader cryptocurrency community.

RLUSD is pegged: 1 The reserve unit is collateralized by US dollar deposits, short-term US government treasuries, and other cash equivalents. It is worth 1 US dollar. RLUSD is first available on Ripple’s XRP Ledger (XRPL) and the Ethereum mainnet, with potential expansion to other blockchains and decentralized finance (DeFi) protocols later.

Ripple highlighted RLUSD’s ability to facilitate instant cross-border payments, addressing a key challenge in global finance: fluctuating exchange rates. Another benefit of the stablecoin is it offers seamless fiat to stablecoin on/off ramps. 

Ripple’s advisory board includes former FDIC chairman Sheila Bair and Ripple co-founder Chris Larsen, who will ensure that the project adheres to regulatory compliance and maintains responsible development.

Ripple will publish monthly, third-party audited attestations of RLUSD’s reserves to build trust and transparency. Liquidity providers like B2C2 and Keyrock will support the stablecoin.

What Do Ripple’s Ecosystem And RLUSD Bring To You?

Ripple seeks to integrate RLUSD with its existing offerings in cross-border payments. RLUSD will provide price stability to institutional clients who use Ripple’s native token, XRP, as liquidity for the stablecoin. The distribution of RLUSD comes from exchange partners like Uphold, Bitstamp, Bitso, MoonPay, and CoinMENA.

This launch will make Ripple a direct competitor to big stablecoins such as USDC and USDT, further expanding its presence in global payments.

Sure enough, RLUSD launched with XRP’s dramatic price spike, which saw it again become the third-largest cryptocurrency by market cap. XRP has surged 121 percent over the past 30 days to a seven-year high of $2.89 on December 12. The value of the token, XRP, sits at $2.60 per token as of December 18, making it among the more valuable cryptocurrencies. According to CoinMarketCap, it is worth more than both Tether ($2.60) and Solana ($2.60).

Additionally, XRP’s network activity has spiked. XRPScan reports that active accounts have grown by 278% since November 1st, to 105,956 accounts on December 2nd and 74,273 accounts on January 3, 2019.

Several developments have contributed to XRP’s meteoric rise:

  • Ripple’s Product Launches: Market confidence has been boosted by Ripple’s rollout of RLUSD and their recent launch of the first tokenized money market on the XRP Ledger.
  • Escrow Holdings: It has stopped speculation that Ripple’s (XRP) escrow holdings are being used to prop up the backing of RLUSD stablecoin, which has given hope to its prospects in the long run. Increasing volume could lower XRP’s circulating supply and add liquidity to the XRP ledger.
  • ETFs on the Horizon: Recent filings for Ripple exchange-traded funds (ETFs) by institutions like WisdomTree, 21Shares, and Bitwise add to Ripple’s prospects. The SEC’s approval of these ETFs will provide institutional investors a simpler means to participate in XRP, increasing liquidity and creating demand.

XRP future price trajectory remains optimistic by the market analysts. According to cryptocurrency trader Jacob Canfield, it’s possible that XRP could touch $6.60, nearly doubling its previous high both via Fibonacci extensions and the current market outlook. XRP, however, may remain range-bound between $2.75 and $3.00 before it attempts to crack through to new highs.

As its recent run continues to resemble its other rallies, this time around, Bitcoin’s (BTC) price is five times higher, paving the way for XRP to maintain its momentum. The bull run for XRP could go on well into 2025 if SEC-approved ETFs materialize and other institutional adoption occurs.

As the launch of RLUSD and the price surge of XRP do, Ripple has every opportunity to add more clout to its role within the global payments ecosystem. Ripple uses the integration of RLUSD with its existing infrastructure to provide a solution other than cross-border transactions that is seamless, transparent, and efficient. 

https://twitter.com/DelCrxpto/status/1863405589230957052

This strengthens Ripple’s stance as a leader in blockchain-based finance and a company that fully embraces the compliance requirements that the digital currency space is constantly evolving upon.

If Ripple can extend RLUSD’s availability to other blockchains and DeFi protocols, the stablecoin could become a cornerstone of Ripple’s long-term strategy. Encouragingly, Ripple’s news and XRP’s price rally show a bright future for the token and its native stablecoin.

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