The post Ripple Burns Massive RLUSD Tokens: A Sign of Upcoming Stablecoin Launch? appeared first on Coinpedia Fintech News
Ripple has just made a bold move in the crypto world, burning nearly all of its Ripple USD (RLUSD) tokens. In a single day, 46.67 million RLUSD tokens were permanently removed from circulation. This significant action has raised questions about the future of RLUSD and its potential impact on its blockchain.
Ripple’s RLUSD Burn Sparks Major Speculation
According to reports from the Ripple Stablecoin Tracker, the recent burn of 46.47 million RLUSD tokens could be a sign that Ripple is preparing to officially announce the launch of its long-awaited stablecoin.Â
This move to burn nearly all the RLUSD tokens, leaving just 100,000 on each blockchain, aims to reduce the supply of the token, potentially increasing its scarcity. As demand for the token rises, this scarcity could lead to a rise in the value of the remaining RLUSD tokens.
However, there’s still a major hurdle for Ripple to overcome: securing approval from the New York State Department of Financial Services (NYSDFS). This approval is essential for Ripple to proceed with its stablecoin plans.
Ripple Minted 10.5 Mln Token
Ripple Labs has taken an important step toward launching its RLUSD stablecoin by minting 10.5 million tokens on the mainnet as reported by Coinpedia News. This is part of a series of tests to make sure the stablecoin can handle real-world use before it officially launches.
Ripple Plans to Dominate Stablecoins
Ripple’s entry into the stablecoin market dates back to April when the company expressed its interest in launching a dollar-pegged cryptocurrency. This move comes as the stablecoin market continues to grow rapidly, with market leaders such as Tether (USDT) and USDC reaching massive market caps of $130 billion and $40 billion, respectively.
Ripple’s stablecoin aims to tap into this demand by offering a stablecoin available on both the XRP Ledger and Ethereum networks. The company began testing its stablecoin in August with a limited group of enterprise partners.
Looking ahead, Ripple has hinted that it could add more networks to support its stablecoin in the future, allowing for broader adoption and use cases.
Timeline For Ripple RLUSD Launch
Ripple President Monica Long previously mentioned that the stablecoin would already have customers lined up when it is publicly launched.
Despite the strong anticipation surrounding Ripple’s stablecoin, the timeline for its official release remains unclear. Earlier this year, Long expressed hope that the stablecoin would be launched by the end of 2024, but no exact dates have been confirmed.
As Ripple prepares for its next steps, all eyes are on how this development will affect the stablecoin market.
