Few hours ago, on Tuesday the 17th December, 2024, Ripple announced the launch of its stablecoin, RLUSD. In less than 24hours of the launch, XRP price has seen massive increase, rising by over 4.5% to reclaim the $2.50 level and projecting a rally of getting to $6.
How Does This Launch Affect XRP?
XRP is the native token of the XRP Ledger and the cryptocurrency used by the Ripple payment network, a technology company specializing in the real-time gross settlement system, currency exchange and remittance network. XRP operates on an open-source and peer-to-peer decentralized platform.
The launch of RLUSD could increase the adoption of Ripple in emerging economies, with high need for stablecoins, as stablecoins are increasingly used for transactions and savings. This demand will lead to an increase in the price of XRP, as it will be used to perform transactions on Ripple.
Crypto Experts and Enthusiasts have predicted that XRP will get even higher and surpass the current levels of $2.58, that it is currently trading at. The launch of RLUSD is the start of a new journey for the Ripple Network.
Axelar, co-founder of Georgios Vlachos, has pointed out that RLUSD’s utility, particularly in emerging economies where stablecoins are widely used for transactions and savings, will significantly boost XRP adoption in 2025. In her words, “the interoperability platform links XRPL to 69 other blockchains and this will enable seamless integration.”
These claims are not far-fetched as market interest in XRP continues to grow. For instance on 1st December, 2024, Coingecko recorded that XRP surpassed Solana in market capitalization, ranking as the fourth-largest cryptocurrency with a current market cap of $138 billion, close to Tether’s $140 billion. These informations show that XRP is gaining prominence amongst retail and institutional investors.
Features of RLUSD
RLUSD is a stablecoin fully backed by the United States government bonds, US markets and other cash equivalents with monthly third-party audits. It is designed to maintain a 1:1 parity with the dollar. It is also built for multi-chain support – cross-border payments, DeFi integration, and bridging between fiat and crypto.
A major factor in the launch of RLUSD is regulatory approval from the New York Department of Financial Services (NYDFS). This approval ensures that the stablecoin complies with standards of compliance and transparency, which is essential to gain the trust of crypto users and investors, and positions RLUSD as a direct market competitor to USDT and USDC.
Ryan Lee, Chief Analyst at Bitget, says: “The emphasis placed by RLUSD on regulatory compliance and interoperability between blockchains puts it in direct competition with established players like USDT and USDC. If executed effectively, RLUSD could push the stablecoin market towards higher standards and strengthen its role in traditional finance, especially in cross-border transactions.”
Ripple USD (RLUSD) is now live on global exchanges. It is available on several exchange platforms, including MoonPay, Uphold, CoinMENA, Bitso, and ArchaxEx. By providing instant global payments, seamless on/off ramps and providing value in real world assets, the launch of RLUSD is a step toward the future of finance.
The Future of RLUSD
The recent rise in XRP reflects a combination of market catalysts that includes favourable regulatory concepts, technical advancements, and an increase in institutional interest. As RLUSD stablecoin is set to play a major role in XRP’s ecosystem, the token is designed to remain a key player in the cryptocurrency market in 2025.
In the words of Monica Long, President of Ripple Network, “The release of RLUSD marks a new chapter – both for the XRP Ledger, as well as @Ripple for use in our $70B+ payments flows. Combining our 10+ yrs in the business; the rigor & compliance required with stablecoin issuance by a @NYDFS chartered company; and an experienced Advisory Board – RLUSD is launching from Day 1 with credibility, utility and a whole host of partners ready to support it!”
