Ripple burned 46.6 million RLUSD tokens within 24 hours, sparking speculation about its stablecoin’s imminent launch.
The RLUSD stablecoin is tested on XRP Ledger and Ethereum, with further network support planned.
Regulatory approval from the New York DFS remains a significant challenge for Ripple’s stablecoin strategy.
Ripple made waves on Wednesday by burning 46,676,120 Ripple USD (RLUSD) tokens within 24 hours. This massive burn, tracked by the Ripple Stablecoin Tracker on X (formerly Twitter), has fueled speculation about the imminent launch of Ripple’s much-anticipated stablecoin.
https://twitter.com/Vet_X0/status/1861963009775600049
Ripple’s Strategic Entry into Stablecoins
The San Francisco-based blockchain giant has been exploring stablecoin opportunities since April. By leveraging its robust technology, Ripple aims to address the growing demand for dollar-pegged cryptocurrencies. The RLUSD stablecoin, tested in partnership with select enterprises since August, is currently supported on the XRP Ledger and Ethereum. Ripple has hinted at expanding its network compatibility in the future.
Market Context and Competitors
Ripple’s entry into the stablecoin market places it alongside giants like Tether and Circle. Tether’s market capitalization recently exceeded $130 billion, while Circle’s USDC is valued at nearly $40 billion. Though in its testing phase, Ripple's upcoming stablecoin already has a competitive edge with enterprise-level use cases lined up for its public launch.
Challenges with Regulatory Approval
Ripple continues to face significant regulatory hurdles, particularly from the New York State Department of Financial Services (DFS). Vet, a decentralized validator on the XRP Ledger, emphasized that securing DFS approval remains a critical challenge for Ripple’s stablecoin ambitions. Despite these hurdles, the company remains committed to its roadmap.
Ripple President Monica Long recently revealed that several customers are prepared to adopt the RLUSD stablecoin upon its launch. While Ripple has yet to announce a specific release date, Long expressed optimism about its debut before the year ends.
