- Ripple has increased RLUSD minting during the testing phase.
- RLUSD tokens have flooded the blockchain, though trading remains halted.
- Rippleโs top executives have shown strong support for RLUSD.
Ripple is making bold moves to push its RLUSD stablecoin closer to launch, ramping up development on both the Ethereum and XRP networks. Recent on-chain activity reveals a surge in RLUSD minting, signaling that the company is advancing its stablecoin ambitions as part of a broader plan to reshape blockchain-based finance.
Blockchain tracker Etherscan recorded a major move on September 28, when Ripple minted 300,000 RLUSD tokens at its Treasury. The transaction was flagged by Ripple Stablecoin Tracker, an X (formerly Twitter) account that closely monitors stablecoin activity.
Rippleโs RLUSD Mints Spike Amid Testing Phase
The minting sparked immediate buzz among Ripple followers and crypto enthusiasts as the firm intensified its testing phase. Rippleโs efforts didnโt stop there. On September 27, the company minted an additional 50,000 RLUSD tokens, with smaller mints of 5,515 RLUSD and 485 RLUSD occurring in the days prior.
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The company even burned 50 RLUSD, part of a deliberate testing process since the company kicked off private beta testing in August. Despite the flurry of activity, the stablecoin is not yet available for trading. The company has made it clear that it is still awaiting regulatory approval.
These mints’ varied amounts and frequency suggest the company is stress-testing the system, preparing for broader use cases. The timing is significant, right after Rippleโs high-profile legal victory against the U.S. Securities and Exchange Commission (SEC), which cleared a major hurdle for the company’s future plans.
Ripple’s Top Execs Excited About RLUSD
Ripple CEO Brad Garlinghouse introduced RLUSD during the XRP Ledger Community Summit in Amsterdam, positioning the stablecoin as a core piece of Rippleโs ecosystem. It will have to compete with heavyweights like Tetherโs USDT, but the company believes RLUSD offers distinct advantages, especially in settlement solutions and decentralized exchanges (DEXs).
Ripple President Monica Long emphasized that RLUSD and XRP will serve different purposes within the ecosystem. While the stablecoin is tailored for fast, efficient settlements and integration with traditional finance, XRP will continue to play a key role in crypto transactions.
Backed 1:1 by U.S. dollar reserves, RLUSD is primed to be a stable, collateral-backed tool for the company’s expanding vision. With ongoing testing and clear ambition, the stablecoin could soon become a major player in bridging the gap between blockchain and the broader financial world.
On the Flipside
- RLUSD is not yet authorized by regulators, which could pose significant hurdles or delays before it becomes available for trading.
- Entering a space dominated by well-established stablecoins like USDT and USDC, RLUSD may struggle to gain significant market share.
- Without broad support from major exchanges and DeFi platforms, the stablecoin might face difficulties in achieving widespread adoption and liquidity.
Why This Matters
Ripple’s RLUSD stablecoin development matters as stablecoins are vital to crypto market stability and liquidity. Introducing competition to Tether could spark innovation, while Ripple’s focus on settlements and regulatory compliance may set new standards, reshaping blockchain-based finance.
Curious about the potential implications of an appeal in the SEC’s case against Ripple? Read this article for more details:
Ripple’s XRP Ruling Under Fire: Potential SEC Appeal Explained
Want to learn more about the upcoming documentary “XRP Unleashed” and its potential impact on Ripple’s legal battle with the SEC? This article explores it in detail:
Rippleโs $125M SEC WarโXRP Unleashed Doc Pulls No Punches
