Ripple has taken a significant step in its journey towards launching the RLUSD stablecoin by burning 64 RLUSD coins as part of its beta testing phase. This move highlights Ripple’s commitment to innovation in the stablecoin market and marks an important milestone as they aim to fully launch RLUSD by the end of 2024.
The RLUSD stablecoin is designed to work alongside XRP, rather than replace it. Ripple’s objective is 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 by Ripple is not a new practice. In fact, during its private beta testing, the company burned 185 RLUSD tokens in late August, leaving none in circulation. This strategy demonstrates Ripple’s dedication to refining RLUSD before its public release, ensuring that the stablecoin meets the highest standards of stability and performance. While beta testing continues, Ripple has stated that the introduction of RLUSD is meant to complement XRP’s role in their ecosystem.
This approach aligns with Ripple’s overall goal of maintaining XRP as a key component of its operations while exploring new opportunities in the stablecoin space.
It is important to note that initially, the RLUSD stablecoin will only be available to institutional investors. Ripple has indicated that retail access to RLUSD will eventually be offered, but only through intermediaries. This phased approach demonstrates Ripple’s focus on establishing a solid foundation for RLUSD, confirming its scalability and security, before making it accessible to a wider audience.
Additionally, the XRP Ledger trust line valued at $1 trillion for RLUSD showcases Ripple’s commitment to scalability and user trust. This supports their promise to create a stablecoin capable of handling large transaction volumes while providing a secure platform for users.
Meanwhile, XRP has faced significant challenges in the market. The cryptocurrency recently struggled to maintain its position above $0.60, erasing all gains made in the previous 48 hours. Currently, XRP is trading around $0.5878.
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