Blockchain development company Ripple's upcoming dollar stablecoin Ripple USD (RLUSD) has been approved by the New York Department of Financial Services (NYDFS). Ripple CTO David Schwartz stated that RLUSD may experience 'supply shortages' during its initial launch, and he reminded investors to avoid 'FOMO.'
As RLUSD goes live, there may be supply shortages in the very early days before the market stabilizes. There actually is someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD. Tools will show you the highest price anyone is willing to pay, even if it's just for a… https://t.co/LOx4rGiiiJ
— David "JoelKatz" Schwartz (@JoelKatz) December 15, 2024
Schwartz responded on the X platform on Sunday to a tweet showing that 1 RLUSD was valued at approximately 511 XRP (about $1,200) on a Ripple wallet called Xaman. Schwartz noted that there are indeed people willing to buy very small amounts of RLUSD for $1,200, and tools will show the highest price anyone is willing to pay. Perhaps someone wants to get a head start on a decentralized exchange and "honorably" purchase the first batch of RLUSD.
Schwartz stated that as long as the supply stabilizes, the price will return very close to the $1 level. If not, it indicates that there are some very serious errors.
"The core purpose of a stablecoin is to maintain price stability. Short-term price fluctuations due to supply and demand shortages are certainly possible, especially in the early days of issuance, but this situation should not last too long, as arbitrageurs will quickly correct the market price. Please do not buy stablecoins due to FOMO (fear of missing out)! This is not an opportunity to get rich."
On December 11, Ripple CEO Brad Garlinghouse announced that RLUSD has received final approval from the New York Department of Financial Services, and Ripple's official X account stated that the stablecoin is about to launch.
Axelar co-founder: RLUSD stablecoin will increase demand for XRP
Ripple first announced RLUSD in June of this year. The stablecoin will be issued on the XRP Ledger (XRPL) and Ethereum blockchain, fully backed by dollar cash and cash-equivalent reserves, and can be exchanged 1:1 for dollars.
Ripple also announced its upcoming new product, the XRPL EVM Sidechain, which aims to bring Ethereum Virtual Machine (EVM) compatibility to XRPL. Additionally, the XRPL EVM sidechain will prioritize the open-source interoperability platform Axelar as the exclusive cross-chain bridge to obtain the native gas token eXRP of that sidechain. Axelar can also be used to connect other fungible tokens with the XRPL mainnet and over 55 blockchains in the Axelar network.
Axelar co-founder Georgios Vlachos stated in an interview with Cointelegraph that the upcoming RLUSD stablecoin may drive demand for XRP in 2025.
Vlachos stated that people in many countries, including emerging economies, will use stablecoins as a means of transaction and a tool for storing value. Most transactions and remittances of RLUSD will be settled on XRPL and XRPL EVM sidechains, thereby driving demand for XRP. He stated:
"When these transfers are made, XRP is needed to pay the gas fees. Therefore, XRP holders will still benefit, as some XRP will be burned with each transaction."
Source
