Ripple’s RLUSD stablecoin is currently in beta testing. It could soon reshape the XRP ecosystem and the broader stablecoin market. Recent activity includes the minting of significant amounts of RLUSD. This could suggest that the testing phase is coming to an end. Or, it could be entering a more active phase of development.
This new stablecoin RLUSD will operate on both the XRP Ledger and Ethereum. But a future expansion is also possible and expected. This has even increased interest in XRP.
RLUSD Stablecoin Tests Lead to XRP Surge
The success of the RLUSD stablecoin could solidify Ripple’s position in the competitive stablecoin sector, which is expected to reach $2.8 trillion by 2028.
Open interest in XRP has also surpassed $1 billion. This is likely a result of growing enthusiasm for Ripple’s upcoming RLUSD stablecoin, which is gaining attention on social media.
Over the past weekend, bets on XRP futures have surged to over $1 billion. This level was last seen in March and June of last year.
Some recent activity has suggested that RLUSD’s testing phase may be coming to an end. Another possibility is that it is entering a more active phase of development, creating a lot of buzz on social media.
This is because, even in beta, the stablecoin had a burn of 24 RLUSD on the XRP Ledger blockchain and 64 RLUSD on Ethereum. RLUSD will coexist on both networks simultaneously. Therefore, it has the possibility of expanding to other networks in the near future.
RLUSD not yet available
But on Monday, Ripple said RLUSD remains in private beta on the XRP Ledger and Ethereum blockchain. In a blog post on X, the company warned investors about scams using the stablecoin.
Ripple has revealed that it plans to use the RLUSD stablecoin in its cross-border payments product. It would provide liquidity, make transactions faster and cheaper, and potentially integrate with several decentralized finance (DeFi) protocols across multiple blockchains.
Another factor that contributed to the XRP price surge was the news of an XRP ETF filing by Bitwise. However, even after a brief bullish moment, the XRP price has since fallen by over 2%, along with the broader cryptocurrency market.
Meet RLUSD, Ripple’s new stablecoin
Some important information, such as the total supply of the stablecoin, limits, are not yet fully disclosed.
The stablecoin market is particularly sensitive to user trust, so a failure here could irreparably compromise the success of the stablecoin. As such, Ripple appears to be treading carefully, especially in the testing phase, to gain a strong foothold in this rapidly growing market.
The launch of RLUSD will be crucial for Ripple, as it will have major ramifications for the future, not just for stablecoins, but for cryptocurrencies as a whole.
Careful management of the company will make all the difference in the final stages of the testing phase. This is important to avoid mistakes that could cause users to lose confidence in the future of the RLUSD stablecoin.
The success of RLUSD could also mark a major milestone for Ripple, especially given its long-running legal battle with the SEC. Ripple Labs is accused by the SEC of violating the law by allegedly raising funds by selling XRP without registering it as a security.
The SEC claims that the XRP sales were conducted by Ripple Labs as an unregistered securities offering. Ripple Labs filed a defense and said that XRP should not be classified as a security. It claims that the SEC failed to mention anything about the fact that the sales were subject to securities laws.
Therefore, a successful stablecoin like RLUSD would ultimately strengthen Ripple Labs’ position both in the cryptocurrency market and in the stablecoin market as a whole.
