Ripple recently burned nearly all of its Ripple USD (RLUSD) tokens, according to the Ripple Stablecoin Tracker on X (formerly Twitter). In 24 hours, the company destroyed a total of 46,676,120 RLUSD tokens. This large-scale burn has sparked rumors that Ripple may be officially preparing to launch its stablecoin soon. The move comes after Ripple announced its entry into the stablecoin market earlier this year, and many are now anticipating an official announcement.
Ripple’s stablecoin project, which began in April, aims to capitalize on the increasing demand for stable, dollar-pegged cryptocurrencies. The company started experimenting with the stablecoin in August, but only with a handful of enterprise firms. Ripple has confirmed that their upcoming stablecoin will also run on XRP Ledger and Ethereum but may expand its support to other blockchains. Ripple President Monica Long has in the past said that the stablecoin will have several customers in place at its launch.
Also Read: Ripple Introduces RLUSD Stablecoin with Key Exchange Partnerships to Redefine Global Payments
Regulatory Approval Remains a Major Hurdle for Ripple’s Stablecoin
Despite the growing excitement surrounding the potential launch, securing approval from the New York State Department of Financial Services (NYSDFS) remains one significant challenge. Vet, a dUNL validator on the XRP Ledger, sees it as such, and rightly so, owing to a crucial prerequisite in the form of the green light from NYSDFS. Failure to obtain this approval may slow the official discharge of Ripple’s stablecoin.
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The entry of Ripple into the stablecoin space appears at a time when conventional industry giants like Tether and Circle hold the market. Tether’s market capitalization had surged past $130 billion, while USDC was at more than $40 billion when writing this piece. Therefore, the stablecoin from Ripple will face tough competition to make headway; however, it operates within the XRP ecosystem, which will be an added advantage.
Ripple’s stablecoin, once launched, is expected to complement its growing blockchain ecosystem, providing new opportunities for enterprise adoption. Although the stablecoin’s official release timeline remains uncertain, Ripple’s efforts signal its continued push into the cryptocurrency and blockchain sectors.
Also Read: Ripple’s RLUSD Stablecoin Set for Public Launch Amid Rising Demand
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.