Ripple’s much-anticipated fiat-backed stablecoin, Ripple USD (RLUSD), is generating major buzz ahead of its launch today.
Ripple’s much-anticipated fiat-backed stablecoin, Ripple USD (RLUSD), is generating major buzz ahead of its launch today. On-chain marketplaces are already witnessing bids reaching as high as 836 XRP (worth around $2,123) for small portions of RLUSD. This is a clear indication of the race among traders to get early access to the new stablecoin.
At the time of writing, bids for RLUSD ranged between 500 XRP (worth around $1,270) and 836 XRP (worth around $2,068), far exceeding the token’s intended $1 value. The excitement surrounding RLUSD’s debut has also had a ripple effect (pun intended) on XRP price. The native token XRP XRP $2.59 24h volatility: 8.2% Market cap: $148.02 B Vol. 24h: $15.73 B climbed over 5% in the past 24 hours and is now trading at around $2.54.
The speculative nature of crypto launches is not new. Traders often pay premiums for small portions of new tokens to claim early ownership or capitalize on the novelty factor.
the question is not how many dollars 1 RLUSD will be worth, but how many RLUSD 1 XRP will be worth.
— nietzbux (@nietzbux) December 15, 2024
Notably, short-term price volatility is natural during launches due to imbalances in supply and demand. Ripple’s Chief Technology Officer David Schwartz explained on December 16 that many traders will exploit price gaps, buying RLUSD below $1 and selling it at inflated rates, thereby correcting the price quickly.
However, Ripple’s team remains confident that market forces will bring RLUSD’s price in line with its intended $1 peg.
The RLUSD stablecoin will go live on the XRP Ledger today. It will immediately be available on partner platforms like Uphold, Bitso, MoonPay, Archax, and CoinMENA. Future listings on exchanges such as Bitstamp, Bullish, Mercado Bitcoin, and Independent Reserve are already in the pipeline, with additional rollouts expected in the coming weeks.
Ripple’s RLUSD enters a rapidly expanding $203 billion stablecoin market, where established giants like Tether’s USDT and Circle’s USDC dominate. RLUSD aims to integrate into Ripple’s cross-border payment solutions, offering an efficient alternative for international transactions. Ripple CEO Brad Garlinghouse previously revealed that RLUSD will primarily cater to institutional players, enhancing its appeal to businesses in global finance.
Meanwhile, the stablecoin market continues to grow. According to a report by Bloomberg, stablecoin payments in Singapore alone reached $1 billion this year, and worldwide adoption is expected to accelerate.
Regulatory clarity, especially in regions like the European Union, is further driving stablecoin integration. The EU’s Markets in Crypto-Assets (MiCA) regulation, set for full implementation by January 2025, requires issuers to obtain licenses. This will create opportunities for traditional financial institutions to enter the market.
Ripple’s RLUSD, with its targeted use cases and strong institutional backing, stands poised to challenge the status quo.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
