XRP, the native token on Ripple's payment network, has surged 11% in the last 24 hours, following the announcement that Ripple's highly-anticipated RLUSD stablecoin has received regulatory approval and is preparing to launch "soon." ๐
๐ Ripple's RLUSD Stablecoin
Ripple's RLUSD stablecoin, a cryptocurrency designed to maintain a steady value in line with the U.S. dollar, has been approved by the New York Department of Financial Services. ๐ While stablecoins can operate without this approval, Ripple sought to be added to New York's "greenlist" to gain credibility as a compliance-first company and access the New York market. ๐
๐ Impact on XRP
The launch of RLUSD will not directly impact XRP, but positive news about Ripple is often seen by investors as a boon for XRP. ๐ XRP is used to settle transactions on Ripple's payment network, and the coin's value has risen from $1.98 to a high of $2.46, amid news of the RLUSD stablecoin's launch. ๐
๐ Stablecoin Market
The stablecoin market is worth over $200 billion and is expected to grow to $2.8 trillion by 2028, according to Bernstein Research. ๐ Stablecoins offer low volatility and fast settlement, making them popular for international payments and as reserve assets in countries with high rates of inflation. ๐
๐ Competition in the Stablecoin Market
Despite the sector's massive growth, two rival stablecoinsโCircle's USDC and Tether's USDTโhave about 90% market share, according to Coingecko data. ๐ However, Ripple CEO Brad Garlinghouse is confident that Ripple will outcompete these current leaders and become the "gold standard for enterprise-grade stablecoins." ๐
๐ Ripple's Advantage
Ripple has promised that the stablecoin will be 100% backed by U.S. dollar deposits, short-term U.S. treasuries, and other cash equivalents. ๐ Crypto analyst Toe Bautista notes that Ripple holds large monetary reserves, including 80 billion XRP allocated to the company in 2012, that will make it easier for the company to deliver on this promise. ๐ $XRP
๐ค What do you think? Share your theories and speculations in the comments below! ๐ฌ
