RLUSD has sparked intense early demand with bids far exceeding its peg, while XRP gained 5% as excitement builds around the launch.
Ripple’s much-anticipated fiat-backed stablecoin, Ripple USD (RLUSD), is generating major buzz ahead of its launch today. On-chain marketplaces are already witnessing bids reaching as high as 836 XRP (worth around $2,123) for small portions of RLUSD. This is a clear indication of the race among traders to get early access to the new stablecoin.
At the time of writing, bids for RLUSD ranged between 500 XRP (worth around $1,270) and 836 XRP (worth around $2,068), far exceeding the token’s intended $1 value. The excitement surrounding RLUSD’s debut has also had a ripple effect (pun intended) on XRP price. The native token XRP XRP$2.59 climbed over 5% in the past 24 hours and is now trading at around $2.54.
Notably, short-term price volatility is natural during launches due to imbalances in supply and demand. Ripple’s Chief Technology Officer David Schwartz explained on December 16 that many traders will exploit price gaps, buying RLUSD below $1 and selling it at inflated rates, thereby correcting the price quickly.
However, Ripple’s team remains confident that market forces will bring RLUSD’s price in line with its intended $1 peg.
The RLUSD stablecoin will go live on the XRP Ledger today. It will immediately be available on partner platforms like Uphold, Bitso, MoonPay, Archax, and CoinMENA. Future listings on exchanges such as Bitstamp, Bullish, Mercado Bitcoin, and Independent Reserve are already in the pipeline, with additional rollouts expected in the coming weeks.
A Booming Stablecoin Market
Ripple’s RLUSD enters a rapidly expanding $203 billion stablecoin market, where established giants like Tether’s USDT and Circle’s USDC dominate. RLUSD aims to integrate into Ripple’s cross-border payment solutions, offering an efficient alternative for international transactions. Ripple CEO Brad Garlinghouse previously revealed that RLUSD will primarily cater to institutional players, enhancing its appeal to businesses in global finance.
Meanwhile, the stablecoin market continues to grow. According to a report by Bloomberg, stablecoin payments in Singapore alone reached $1 billion this year, and worldwide adoption is expected to accelerate.
Regulatory clarity, especially in regions like the European Union, is further driving stablecoin integration. The EU’s Markets in Crypto-Assets (MiCA) regulation, set for full implementation by January 2025, requires issuers to obtain licenses. This will create opportunities for traditional financial institutions to enter the market.
Ripple’s RLUSD, with its targeted use cases and strong institutional backing, stands poised to challenge the status quo.
