Ripple Labs continues its development and testing of the Ripple USD (RLUSD) stablecoin, with the blockchain company minting millions of RLUSD tokens in recent weeks. According to the Ripple Stablecoin Tracker, the company has burned some minted stablecoins in batches. These burns included four separate transactions, each involving 115 and 120 RLUSD tokens.
Ripple Burns 470 RLUSD Stablecoins After Massive Minting Spree
In a recent update, Ripple has executed the burning of 470 RLUSD stablecoins after minting over 1000 RLUSD tokens in the past week. This burn occurred through four distinct transactions, with two burns of 115 tokens and two of 120 tokens each, taking place at the RLUSD Treasury. These activities are part of a continuous testing phase for its new stablecoin project in private beta.
Since August 2024, Ripple has been rigorously testing its RLUSD stablecoin, designed to be pegged to the U.S. dollar and backed by cash equivalents. The company has minted multiple batches of RLUSD, most recently, the XRP company issued 1.35 million RLUSD tokens. These tokens were also minted in other smaller tranches, including batches of 500 RLUSD issued on October 6.
While the XRP company has actively developed RLUSD, it remains cautious. The company informed the XRP community that the stablecoin is still under testing and that it would not be publicly available until regulatory approvals are obtained and the product is fully launched.
Dual-Chain Strategy for RLUSD
In addition, initially, Ripple planned to launch RLUSD on both the Ethereum and XRP Ledger (XRPL) blockchains. However, recent updates suggest that the RLUSD stablecoin will first be released on the Ethereum network. This decision sparked debate within the XRP community, as many expected the stablecoin to be primarily deployed on the XRPL.
The decision to launch on Ethereum is seen as a temporary move, with the company confirming that the stablecoin will eventually be launched on the XRPL by 2024. However, RLUSD on XRPL may initially lack key functionalities such as the Automated Market Maker (AMM), which will be restricted to the decentralized exchange (DEX) orderbook on XRPL.
More so, with the XRP company continuing to refine RLUSD, former employees and industry insiders remain optimistic about the stablecoin’s potential to benefit XRP. According to a recent interview, a former Ripple employee believes RLUSD will drive liquidity to XRP and strengthen its utility, especially in cross-border payments.
The growing utility and liquidity of XRP could drive its price higher, especially as the company plans to expand the RLUSD stablecoin and integrate it into its broader ecosystem. At the time of writing, XRP price is $0.53, reflecting a 0.72% decrease in the past 24 hours. However, the 24-hour trading volume has seen a 24% surge, reaching over $1.1 billion.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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