Ripple’ RLUSD Floods Market, Boosts XRP Demand

Ripple has created 600,000 more RLUSD tokens.  Ripple displayed a reserve of about $83 million for over $77.2 million in RLUSD. This indicates that the RLUSD backing is 7% over-collateralized.

 

The stablecoin’s launch is projected to increase liquidity in the XRP ecosystem, enabling institutions to make bigger trades with less slippage. Through transaction fees, RLUSD transactions will settle on the XRPL and XRP-EVM sidechains, increasing demand for XRP.

The company had promised that the first report would be made public no later than 30 days after the stablecoin’s launch.  The stablecoin is a major step forward for Ripple’s ecosystem and was approved by New York regulators in December. With a strict 1:1 peg to the US dollar and a strong foundation for major transactions, the RLUSD is supported by cash reserves and short-term US Treasuries.

The crypto industry expects a friendly regime under Donald Trump’s next term as president. The Securities and Exchange Commission famously used Ripple as an example in a 2020 lawsuit, led by cryptocurrency adversary Gary Gensler, who claimed the company was selling XRP as an unregistered security offering.

Ripple received a partial victory in 2023 when a judge decided that while XRP is a security when sold to institutions, it is not when sold to individual investors on exchanges. Ripple is a business-to-business payments company that supports banks, payment processors, and other financial organizations that require cross-border payments.

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ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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