As a seasoned researcher who has closely followed the evolution of blockchain and cryptocurrency, I find Ripple Labs’ latest move to burn its stablecoin RLUSD intriguing. Having delved deep into the world of XRP for years, I can’t help but feel a sense of anticipation at this new development.
The blockchain and digital currency payment company, Ripple Labs, based in San Francisco, has initiated the destruction of its newly created stablecoin called RLUSD. According to XRPScan data, 185 units of these US dollar-linked tokens were burned from the RLUSD Treasury. This was accomplished by transferring the tokens to the issuer account.
Recall that the private beta version of the stablecoin went live on XRP Ledger and Ethereum at the beginning of August. However, with this latest burn, no RLUSD tokens are circulated on either of the two protocols.
RLUSD Private Beta Testing on XRPL and Ethereum
Following a court order for Ripple to pay a $125 million fine due to alleged securities law violations in connection with XRP sales to institutional investors, the company started trialling RLUSD’s private beta on the XRP Ledger and Ethereum’s primary network.
The goal during this stage was to ensure that RLUSD is reliable, secure, and efficient prior to its public release, following the necessary regulatory approval.
Minting of the USD-backed stablecoin on the XRPL and Ethereum mainnet commenced a few days ago. There were 185 RLUSD tokens minted on XRPL and 200 on Ethereum. This was before the burn mechanism began. Currently, there are no RLUSD tokens available to trade on exchanges. Ripple is still working on the stablecoin and plans to make it available to the public very soon.
Currently, the primary goal for this blockchain payment company is to ensure a smooth and trouble-free launch of RLUSD.
Tether And Circle Sees New Rival in Ripple RLUSD
Ripple’s move into the stablecoin market shows they are undaunted by the competition in this area, as Tether and Circle currently hold most of the market share. Tether has been growing rapidly and has announced plans to expand its team next year.
Paolo Ardoino, CEO of the company, emphasized the importance of a strategic hiring process, prioritizing the addition of seasoned professionals to help drive growth without overcomplicating the organizational setup. Additionally, Tether has made significant advancements within the cryptocurrency sector.
As of now, Tether’s USDT holds a market capitalization exceeding $118 billion, while Circle’s USDC stands at $34.5 billion. Clearly, Tether leads the stablecoin market as the dominant player. The future 1-year market cap prediction for RLUSD is uncertain, but industry experts are hopeful. They believe that when it launches this year, RLUSD could potentially vie for a portion of the current market capitalization.
Ripple is optimistic about its latest project, boosted by predictions that the market could grow up to $2.8 trillion within the next four years. Unlike what some might speculate, Ripple isn’t planning on swapping XRP, its native digital coin, with RLUSD. Instead, Ripple executives have explained that these are two distinct cryptocurrencies, each serving unique and complementary roles.
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2024-08-29 12:07