Ripple Labs has achieved a major milestone for its RLUSD stablecoin, securing approval from the New York Department of Financial Services (NYDFS). This regulatory nod marks a significant step in Ripple’s strategy to introduce RLUSD to the broader financial ecosystem. The company recently minted over 13 million RLUSD tokens across the XRP Ledger and Ethereum Network as part of its mainnet testing phase.
Ripple Mints 13 Million RLUSD Tokens
Ripple’s Stablecoin Tracker reported that the company minted 2.6 million RLUSD tokens on the XRP Ledger, along with additional smaller batches of 100,000, 160,000, and 640,000 tokens. Impressively, the XRP Ledger demonstrated exceptional cost-efficiency, with minting costs totaling just 0.00048 XRP.
On the Ethereum Network, Ripple minted larger batches of 10.4 million and 640,000 RLUSD tokens. Despite Ethereum’s higher transaction costs, the largest batch incurred a reasonable fee of 0.00161 ETH (approximately $6.31). These activities highlight the scalability and cost-effectiveness of both networks, positioning RLUSD for competitive performance.
Stablecoin Market Entry and Testing
Ripple has been rigorously testing RLUSD through minting, burning, and transfer operations to ensure its readiness for real-world adoption. Entering a competitive stablecoin market dominated by Tether’s USDT and Circle’s USDC, RLUSD aims to carve out a niche by leveraging Ripple’s strong regulatory compliance.
Ripple CEO Brad Garlinghouse emphasized the company’s commitment to transparency, stating, “When RLUSD is live, you’ll hear it from Ripple first.” This careful approach reflects Ripple’s intent to establish RLUSD as a secure and reliable asset for institutional and retail users alike.
Impact on XRP Price
The RLUSD launch news has sparked bullish momentum for XRP, Ripple’s native token. XRP surged by 13%, reaching $2.46, with analysts forecasting potential highs of $2.80 or even $3 if it breaks the $2.50 resistance level. As XRP approaches a critical resistance within a descending channel, the next 48 hours are crucial for determining its trajectory.
Conclusion
Ripple’s strategic focus on regulatory compliance and rigorous testing positions RLUSD as a promising entrant in the stablecoin market. The project’s success could further cement Ripple’s role as a leader in blockchain innovation while driving the adoption of its native token, XRP.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.