Ripple took a notable step on Wednesday by burning virtually all Ripple USD (RLUSD) tokens. According to the Ripple Stablecoin Tracker, a whopping 46,676,120 RLUSD tokens have been destroyed in 24 hours. This massive token burn is fueling speculation that Ripple is about to make an official announcement about the launch of its highly anticipated stablecoin.
Stablecoin launch in sight?
Ripple began its entry in April into the stablecoin market, which is dominated by giants such as Tether (with a market cap of over $130 billion) and Circle’s USDC ($40 billion). In August, Ripple started testing its new stablecoin in collaboration with a limited number of business partners. The stablecoin is already available on both the XRP Ledger and Ethereum, with possible expansion to other networks in the future.
Ripple President Monica Long previously stated that the stablecoin product will already be used by multiple customers upon its public launch. While the exact launch date has not yet been confirmed, Long previously suggested that the stablecoin may be available this year.
Permission from supervisors remains crucial
According to Vet, a validator on the XRP Ledger (XRPL), obtaining approval from the New York State Department of Financial Services (DFS) remains a key challenge. This approval is essential to remain compliant within the regulated stablecoin market.
Strategic step in a growing market
The timing of this token burn appears to be carefully chosen, as demand for dollar-backed cryptocurrencies continues to grow. Ripple’s move can be seen as a strategy to claim a strong position in the sector and compete with established players such as Tether and Circle. With these developments, Ripple is taking important steps towards broader adoption of its technology, which can further strengthen the position of the XRP Ledger.
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Source: https://newsbit.nl/ripple-stablecoin-in-zicht-bijna-alle-rlusd-tokens-verbrand/
