Ripple is making impressive strides, solidifying its role as a frontrunner in the cryptocurrency industry with its stablecoin, RLUSD. As the crypto market anticipates fresh developments, Ripple’s initiatives to broaden its offerings and ensure transparency are setting exciting new standards.
Recently, Ripple minted 1.79 million RLUSD on the Ethereum blockchain, as noted by the Ripple Stablecoin Tracker. This action is part of Ripple’s ongoing strategy to carve out a significant presence in the stablecoin market. The company previously announced that RLUSD will operate on both the Ethereum blockchain and the XRP Ledger, providing flexibility and accessibility for users.
In just the past 24 hours, an impressive 6.7 million RLUSD was transferred across various platforms. Major cryptocurrency exchange Bitstamp transferred 1.5 million RLUSD, while Ripple itself moved 500,000 RLUSD. The rest of the transfers were executed by unidentified entities, pointing to a rising interest in the utility of RLUSD.
What’s even more remarkable is that RLUSD has experienced an astounding 2,000% increase in trading volume, reaching $611 million, even with a relatively modest $53 million market cap. This surge allows RLUSD to claim the title of the fourth most-traded stablecoin. It has been recently listed on popular exchanges like Uphold, MoonPay, and Bitso.
To ensure transparency and build trust, Ripple has issued nearly $80 million worth of RLUSD, supported by reserves totaling approximately $83 million. Ripple is set to release its first attestation report later this month, verified by independent auditors. This report will illuminate the composition of RLUSD’s backing assets, reinforcing Ripple’s dedication to accountability in the stablecoin market.
Ripple’s CEO, Brad Garlinghouse, has been instrumental in showcasing the company’s robust financial standing. Ripple possesses over $100 billion worth of XRP, significantly enhancing its valuation. Despite speculation, Garlinghouse has confirmed that an IPO is currently not being pursued, with the company’s focus firmly on innovation and sustained growth.
Currently, Ripple is involved in a legal tussle with the SEC, with discussions around a potential appeal. According to John Deaton, the SEC may refrain from further appeals, which could result in a significant win for Ripple. In this climate of regulatory uncertainty, Ripple’s decision to mint stablecoins can potentially influence the price of XRP, which has been struggling to break through the $3 mark.
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FAQs
What is RLUSD and how does it function?
RLUSD is a stablecoin created by Ripple and is backed by reserves on both the Ethereum blockchain and the XRP Ledger, allowing for secure and versatile transactions.
How does Ripple maintain RLUSD’s transparency?
Ripple supports RLUSD with $83 million in reserves and intends to publish an attestation report audited by independent firms for clear transparency.
How might Ripple’s stablecoin influence the XRP price?
The minting of Ripple’s stablecoin could impact the price of XRP, especially amidst legal uncertainties and challenges like the SEC case, which may keep XRP below the $3 target.
