- Each RLUSD is pegged at 1:1 with the USD, backed by tangible assets like U.S. dollar deposits and government treasuries.
- Ripple’s move includes third-party audits and monthly attestations to ensure transparency and reliability of RLUSD reserves.
Ripple has recently initiated the minting of its RLUSD stablecoin on the XRP Ledger and Ethereum blockchain. The company minted a total of 385 RLUSD tokens, split between the two platforms, in a strategic move to integrate this USD-pegged stablecoin into broader market operations.
The RLUSD, designed to be equivalent to the USD and supported by tangible assets like U.S. dollar deposits and government securities, aims to enhance transactional stability and reliability on Ripple’s network.
We’re back for another episode of #CryptoInOneMinute with Ripple SVP, Stablecoins @_JackMcDonald_ discussing “What makes a stablecoin, stable?” Short answer – it’s all about the assets backing the stablecoin. Learn more: https://t.co/uMcoqVx86k pic.twitter.com/kOQuEwesOZ
— Ripple (@Ripple) August 16, 2024
Ripple’s strategy includes thorough audits by third-party accounting firms and monthly attestations to ensure transparency and build trust within the crypto community.
This development is particularly notable as it unfolds in the context of Ripple’s ongoing legal challenges with the U.S. Securities and Exchange Commission (SEC).
Despite a recent court ruling that imposed a hefty fine on Ripple for securities violations, the company continues to advance its technological offerings, demonstrating resilience and commitment to its growth strategy.
The introduction of the RLUSD stablecoin is expected to influence the price of XRP. Historically, the launch of stablecoins has been associated with increased liquidity and heightened market activity, which could potentially lead to a rise in XRP’s value. This phenomenon has been observed with other cryptocurrencies when stablecoins were integrated into their networks.
Moreover, Ripple’s move to launch a stablecoin might also enhance the functionality and appeal of the XRP Ledger, particularly in terms of its utility in facilitating transactions and its potential role in decentralized finance (DeFi) applications.
The addition of RLUSD is poised to increase the total value locked (TVL) in the XRP Ledger’s Automated Market Maker (AMM), expanding its use case and possibly attracting more users and investors.
From a technical analysis standpoint, the XRP price currently shows a consolidation pattern that may soon lead to a price movement.
The current price of XRP (Ripple) is $0.60033 USD, with a 0.48% increase in the last 24 hours.
Technical analysis shows signs of a potential breakout, driven by positive developments in the ongoing SEC lawsuit against Ripple and increased market momentum. Over the past five years, XRP has seen a growth of 120.91%.
Price Prediction: Based on current trends and recent market behavior, XRP is expected to move upwards towards the $0.75 zone in the short term, provided the current support level holds and market conditions remain favorable.
Depending on market reactions and further developments, the price could either experience a correction or an uplift, influenced by the integration of the RLUSD stablecoin and ongoing crypto market.
