Ripple's RLUSD Stablecoin: Everything You Need to Know

Bittime - Ripple, the blockchain company best known for its crypto asset XRP, is preparing to launch their newest stablecoin, Ripple USD (RLUSD). As part of their strategy to strengthen their position in the crypto industry, Ripple has started beta testing of RLUSD on two major blockchain networks, namely XRP Ledger (XRPL) and Ethereum mainnet. This trial aims to ensure stability and integration of RLUSD before full launch.

What is RLUSD?

RLUSD is a stablecoin pegged 1:1 to the US dollar. To maintain its value, RLUSD is backed by a combination of US dollar deposits, short-term US government securities, and other cash equivalent assets. With this structure, RLUSD is expected to provide stability in the crypto market which is known for its high volatility. 

However, RLUSD is currently still in beta and not yet available for trading. Ripple is awaiting approval from regulators before launching RLUSD to the public.

Why is RLUSD Important?

The stablecoin market is currently worth more than $170 billion (Rp. 2,720 trillion) and is dominated by big players such as Tether (USDT) and USD Coin (USDC), with market capitalizations of more than $115 billion (Rp. 1,840 trillion) and $34 respectively. billion (Rp. 544 trillion). RLUSD is designed to compete with these major stablecoins, offering a stable and reliable alternative for crypto users. 

Impact On XRP Price

Although the RLUSD announcement is a strategic move for Ripple, its impact on the XRP price has not been significant. On August 9, 2024, the price of XRP actually fell by 5.81%, from $0.61 (Rp. 9,760) to around $0.58 (Rp. 9,280). 

To date, the increase in XRP prices has only been slight, below 1%, indicating that the market is still waiting for concrete results from the RLUSD trial before providing a stronger reaction.

Market Sentiment Towards XRP

In addition, sentiment in the derivatives market towards XRP shows a bearish trend. Data from Coinglass reveals a negative funding rate of -0.0030% for XRP, meaning more traders are betting on a fall in the price of XRP than on its rise. 

This sentiment reflects investors' uncertainty regarding XRP's short-term prospects, especially amidst the launch of RLUSD which is still in its early stages.

Stablecoin Potential RLUSD

The success of RLUSD will depend largely on the results of ongoing trials and approval from regulators. If everything goes according to plan, RLUSD has the potential to become a major player in the stablecoin market, offering greater stability and strengthening Ripple's position in the crypto sector. 

For market players, it is important to continue monitoring this development because it could bring significant changes to the global crypto ecosystem.

How to Buy Crypto on Bittime

You can buy and sell crypto assets easily and safely via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also ensure you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Study Complete Guide How to Buy Crypto on Bittime. 

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