Ripple Mints Over 13M RLUSD Amid Imminent Launch
Ripple Labs, an American blockchain payments firm, has minted over 13 million RLUSD stablecoins across multiple blockchain networks. This activity is part of Ripple’s intensified testing phase for its stablecoin, which is set to launch soon following approval from the New York Department of Financial Services (NYDFS).
Data from Ripple’s Stablecoin Tracker reveals the minting of 13.9 million RLUSD tokens across the XRP Ledger and Ethereum Network.
On the XRP Ledger, Ripple minted 2.6 million RLUSD, followed by three additional mints of 100,000, 160,000, and 640,000 RLUSD tokens. Concurrently, the Ethereum Network recorded mints of 10.4 million and 640,000 RLUSD tokens.
Regulatory Approval Sets RLUSD Apart from Competitors
Ripple has secured NYDFS approval, making RLUSD one of the few U.S.-regulated stablecoins. Unlike competitors like USDT and USDC, RLUSD meets strict requirements under U.S. financial regulations, including the Dodd-Frank Act and Basel III standards.
The stablecoin is fully collateralized by U.S. Treasuries and held in regulated custody, ensuring compliance with Federal Reserve and FDIC guidelines.
US banks can hold #RLUSD on the XRPL/ETH ledger, and why USDC and USDT cannot.
Here’s an explanation of why RLUSD is so special and why it took years to get approved… READ ON
Regulations Summary:
U.S. GAAP/IFRS: Assets must have clear value, reliable measurement, and meet…
— Vincent Van Code (@vincent_vancode) December 11, 2024
This regulatory approval positions RLUSD as a reliable asset for financial institutions. According to Ripple, its transparent operations, including real-time audits, differentiate it from other stablecoins. USDT, for example, has faced scrutiny for inconsistent audits, while USDC operates partially offshore, making compliance with certain U.S. standards challenging.
Analysts Assess XRP Price Movement Amid RLUSD Developments
The approval and testing of RLUSD have coincided with a notable increase in XRP’s market value. XRP has risen from $1.90 to $2.35, with some analysts describing this as a “speculative pump.” Software engineer Vincent Van Code stated that XRP’s price could see further gains if RLUSD enters decentralized finance (DeFi) ecosystems.
Van Code emphasized that liquidity pool (LP) and automated market maker (AMM) features for RLUSD on the XRP Ledger could drive demand. He suggested that the stablecoin’s inclusion in DeFi protocols could attract more users and increase its adoption.
Conclusion
Ripple’s RLUSD stablecoin has made significant progress in its testing phase, with over 13 million tokens minted across multiple blockchain networks. The regulatory approval from the NYDFS has set RLUSD apart from its competitors, providing a reliable and transparent asset for financial institutions. As the stablecoin prepares for its imminent launch, analysts are assessing its potential impact on the market, with some predicting further gains for XRP.
FAQs
Q: What is RLUSD?
A: RLUSD is a stablecoin developed by Ripple Labs, a blockchain payments firm.
Q: What is the purpose of RLUSD?
A: RLUSD aims to provide a reliable and transparent asset for financial institutions, allowing them to hold and transfer value securely.
Q: How does RLUSD differ from other stablecoins?
A: RLUSD is one of the few U.S.-regulated stablecoins, meeting strict requirements under U.S. financial regulations, including the Dodd-Frank Act and Basel III standards.
Q: What is the significance of Ripple’s regulatory approval?
A: The approval from the NYDFS ensures that RLUSD meets strict regulatory requirements, providing a reliable and transparent asset for financial institutions.
Q: What is the potential impact of RLUSD on the market?
A: Analysts are assessing the potential impact of RLUSD on the market, with some predicting further gains for XRP and increased adoption of the stablecoin in decentralized finance (DeFi) ecosystems.
