$XRP Ripple Burns Almost All Its RLUSD: A Sign That Stablecoin Is Coming Soon?
The recent move to burn almost all of Ripple USD (RLUSD) has attracted attention in the crypto community and sparked speculation that a major announcement from Ripple could be coming soon. The destruction of over 46.6 million RLUSD in 24 hours is no small feat, especially since Ripple has been testing the stablecoin since August with select corporate partners.
What does the RLUSD burn mean?
1. A sign of impending launch: Many see the token burn as a preparation for the official launch of a new stablecoin. Ripple has been public about its intention to enter the stablecoin space since April, aiming to meet the growing demand for stablecoins.
2. Regulatory: One of the major hurdles is approval from the New York State Department of Financial Services (NYSDFS). Ripple will need to go through rigorous approval processes before an official launch.
3. Competition in the stablecoin space: With Tether (USDT) and Circle’s USDC dominating the market (with a combined market cap of over $170 billion), Ripple may want to position its stablecoin as a complementary solution, especially since it supports both XRP Ledger and Ethereum from the get-go.
When will it launch?
Although President Monica Long has stated that the stablecoin product could launch this year, the exact date is still unclear. The RLUSD burn could be part of a restructuring or optimization process before the launch.
An official announcement is expected in the coming weeks.