Ripple has initiated the burning of 64 RLUSD stablecoins as part of its beta testing phase, underscoring its commitment to the upcoming launch of RLUSD. This recent burn at the RLUSD Treasury highlights Ripple’s dedication to innovation in the stablecoin market.
According to Etherscan, Ripple has taken a significant step in its stablecoin development journey by eliminating these 64 RLUSD tokens, marking a pivotal moment as the company gears up for a full rollout by the end of 2024.
Source: Etherscan
The RLUSD stablecoin is designed to complement XRP rather than replace it. Ripple aims to carve out a substantial niche within the competitive stablecoin landscape, which is projected to reach a remarkable $2.8 trillion by 2028.
Burning RLUSD tokens is not a new strategy for Ripple. As reported by CNF, the company previously incinerated 185 RLUSD tokens during its private beta testing phase in late August, resulting in no tokens being left in circulation. This approach illustrates Ripple’s focus on refining RLUSD prior to its public launch, ensuring that the stablecoin adheres to the highest standards of stability and performance. While beta testing continues, Ripple has emphasized that RLUSD is designed to enhance XRP’s role within its ecosystem.
This strategy aligns with Ripple’s broader objective of maintaining XRP as a key element of its operations while exploring new avenues in the stablecoin sector.
### RLUSD’s Institutional Focus and Ripple’s Scalability Commitment
It’s also important to note that the RLUSD stablecoin will initially be available exclusively to institutional investors. As highlighted previously, Ripple has indicated that retail access to RLUSD will eventually be provided, but only through intermediaries.
This phased approach reflects Ripple’s intent to establish a robust foundation for RLUSD, ensuring its scalability and security before extending access to a wider audience. Additionally, the XRP Ledger has established a trust line valued at $1 trillion for RLUSD, further demonstrating Ripple’s commitment to scalability and user trust, thereby supporting its promise to deliver a stablecoin capable of managing significant transaction volumes while ensuring a secure platform for users.
In the meantime, XRP has faced notable market challenges. The cryptocurrency recently struggled to maintain its position above $0.60, reversing all gains made in the past 48 hours. Currently, XRP is trading at approximately $0.5878.
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