Ripple has taken a significant step forward in its stablecoin journey by burning 64 RLUSD coins as part of its beta testing phase, showcasing its dedication to the launch of RLUSD. The burn took place at the RLUSD Treasury and marks an important milestone as Ripple prepares for the full launch of RLUSD by the end of 2024.
RLUSD is designed to work alongside XRP rather than replace it. Ripple aims to establish a strong presence in the highly competitive stablecoin industry, which is projected to reach $2.8 trillion by 2028.
The burning of RLUSD tokens is not a new strategy for Ripple. In late August, the company burned 185 RLUSD tokens during its private beta testing, leaving none in circulation. This approach demonstrates Ripple’s commitment to refining RLUSD before its public debut, ensuring that the stablecoin meets the highest standards of stability and performance. While beta testing continues, Ripple has emphasized that RLUSD is intended to complement XRP’s role in their ecosystem.
Moreover, it is important to note that initially, RLUSD will only be available to institutional investors. Retail access to RLUSD will be introduced at a later stage but will require intermediaries. This staggered approach highlights Ripple’s focus on establishing a solid foundation for RLUSD, confirming its scalability and security, before expanding its availability to a broader audience.
Additionally, Ripple’s commitment to scalability and user trust is demonstrated by the XRP Ledger trust line valued at $1 trillion for RLUSD. This showcases Ripple’s promise to develop a stablecoin capable of handling large transaction volumes while providing a secure platform for users.
Meanwhile, XRP has faced challenges in the market, struggling to maintain its position above $0.60 and reversing all gains made in the past 48 hours. Currently, XRP is trading at around $0.5878.
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