Impact of Ripple USD (RLUSD) Stablecoin Launch on XRP Price

Bittime - On December 4, 2024, was an anticipated moment in the crypto world with the launch of the Ripple USD (RLUSD) stablecoin. 

However, before it can be launched, Ripple is still waiting for approval from the New York State Department of Financial Services (NYDFS). 

This has many people wondering: What impact will RLUSD have on the price of XRP, Ripple's primary token?

What is RLUSD?

RLUSD is a stablecoin that is pegged 1:1 to the US dollar, meaning its value remains stable and is not subject to large fluctuations like other cryptocurrencies. 

RLUSD runs on two large blockchains, namely XRP Ledger (XRPL) and Ethereum, which provides flexibility for its users. 

Ripple hopes this stablecoin will be a faster, cheaper and more secure cross-border payment solution, and help popularize XRP in global transactions.

Although RLUSD has not officially launched, Ripple has warned investors to be wary of tokens claiming to be RLUSD before the official launch. This is done to avoid fraud which often occurs in the crypto world.

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RLUSD Trial and Expansion Plans

Since August 2024, Ripple has been trialling RLUSD on XRP Ledger and Ethereum. The goal is to ensure that this stablecoin functions well before full launch. 

Ripple also plans to expand the use of RLUSD to more blockchains and DeFi (decentralized finance) protocols in the future, which will open up huge opportunities for this stablecoin to be used more widely around the world.

Impact of RLUSD on XRP Price

Now, let's address the big question: Will the launch of RLUSD affect the price of XRP? Currently, the price of XRP is trading around $2.55, despite a small decline of 2.55% in the last 24 hours. 

XRP trading volume also fell by around 28%, indicating market uncertainty ahead of the RLUSD launch.

However, many analysts believe that once RLUSD is launched and used more widely, demand for XRP will increase. 

This is because stablecoins like RLUSD offer a more stable and secure payment solution, which will make more people and companies interested in using XRP for cross-border transactions.

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What to Expect from XRP Price?

The launch of RLUSD could be a turning point for Ripple and XRP. With increasing adoption of RLUSD, XRP has the potential to become increasingly popular among users and institutions. 

This means that the price of XRP could experience a significant increase in the near future.

Conclusion

The launch of RLUSD is a big step for Ripple to create a more efficient and affordable global payments ecosystem. Although the price of XRP is currently slightly down, its future growth potential is huge. 

As RLUSD usage increases, demand for XRP will also increase, which could cause the price of XRP to rise. The crypto world will continue to monitor Ripple's developments and how RLUSD could change the international payments landscape.

FAQ Ripple USD (RLUSD)

What is Ripple USD (RLUSD)?

Ripple USD (RLUSD) is a stablecoin issued by Standard Custody & Trust Company (SCTC), a subsidiary of Ripple. This stablecoin is designed to maintain a stable value, equal to 1 US dollar, and is fully backed by cash reserves and cash equivalent assets.

On which blockchains is Ripple USD available?

Ripple USD is available on two major blockchains, namely XRP Ledger and Ethereum. This allows Ripple USD to be accessed by a wide range of users, both application developers and institutions.

How to ensure Ripple USD is trustworthy?

Ripple USD is secured by cash reserves and low-risk assets, which are regularly audited by leading accounting firms every month. This audit process ensures that reserves supporting Ripple USD are always sufficient and well managed.

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Reference

Gupta, Chandan, Ripple’s RLUSD Stablecoin Set to Launch Today, What’s Next for XRP?, accessed December 5, 2024.

Partz, Helen, Ripple’s RLUSD stablecoin: Here’s what you need to know before launch, accessed December 5, 2024.

Author: MF