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If RLUSD is successful, it could benefit the price of XRP.
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This digital dollar will work on Ethereum and the XRP Ledger.
The company Ripple, known for its Cryptocurrency XRP and its focus on cross-border payment solutions, has taken a significant step in the world of cryptoassets, launching today, December 17, RLUSD, its own stablecoin.
This new cryptocurrency, as explained by the company, It is designed to offer stability, liquidity and facilitate transactions both inside and outside the ecosystem Ripple.
With US dollar backing and regulatory approval, RLUSD has the potential to compete with giants like Tether’s USDT, although at the moment it seems that it will be a difficult task.
Here we present 10 questions that can help you better understand RLUSD and its impact on the market.
1. What is RLUSD?
RLUSD is a stablecoin issued by Ripple, which aims to have a constant value of 1 US dollar.
This parity is achieved through a backing of US dollar deposits, short-term US Treasury bonds and other cash equivalent instruments.
Such a design seeks to ensure the stability of the value of RLUSD and also makes it an ideal tool for financial operations where volatility is a risk.
2. When was RLUSD launched?
The stablecoin was released todayDecember 17, 2024. This launch is an important step for Ripple, extending its offering beyond XRP and positioning itself in the competitive stablecoin market.
The decision to launch RLUSD at this specific time could be influenced by the growing demand for stablecoins that offer stability in an increasingly volatile market.
Additionally, the regulatory outlook looks promising with the arrival of Donald Trump to the White House in January. The president-elect has Bitcoin-conferencia-2024-criptomonedas-nashville/” target=”_blank” rel=”noreferrer noopener”>proposed relax the rules for the digital asset industry.
3. What networks does RLUSD operate on?
RLUSD is already operational in two important networks. The first is XRP Ledger, owned by Ripple, and the second is Ethereumthe most used smart contract network.
This duality allows RLUSD to be part of both the native Ripple ecosystem and the vast network of decentralized applications (DeFi) that live on Ethereum.
With this interoperability approach seeks to maximize the reach and utility of RLUSD, allowing users to interact with different ecosystems without the need to convert between different stablecoins, thus facilitating adoption and use.
4. How is the stability of RLUSD guaranteed?
The stability of RLUSD is ensured by reserves of US dollars, Treasury bonds and other highly liquid assets.
In this sense, Ripple promises transparency regarding these reserves, publishing monthly audited reports to verify that RLUSD maintains its 1:1 peg with the US dollar.
This practice not only provides confidence in RLUSD peg, but also complies with financial regulation standards, which is crucial for its adoption by financial institutions and corporations.
5. What is the goal of RLUSD?
The main objective of RLUSD is facilitate fast and efficient cross-border paymentsoffering an alternative to traditional payment systems that are slower and more expensive.
As a stablecoin, RLUSD eliminates the volatility associated with other cryptocurrencies, ideal for commercial transactions.
Additionally, RLUSD seeks to empower businesses with a treasury tool that allows you to manage cash flows globally without the restrictions of traditional currenciesthus promoting the internationalization of financial operations.
6. How does RLUSD benefit XRP?
The introduction of RLUSD can significantly increase the utility of XRP. When trading RLUSD on the XRP Ledger, the use of XRP is required to pay transaction fees, which could increase the demand for XRP and, therefore, its value.
The expectation generated by the stablecoin is such that even before it was launched, XRP increased in price by 8% in the last 24 hoursas seen in the following graph of TradingView.
XRP price. Source: TradingView.
This synergism between RLUSD and XRP will strengthen the Ripple ecosystem, demonstrating the added value of having a stablecoin within a payments network, positioning Ripple as a more integral player in the global payments market.
7. Who can use RLUSD?
RLUSD is designed to be accessible to a wide range of users, from individuals to large corporations. Nevertheless, focuses on solving the needs of companies and institutions.
Its stability and regulatory support make it attractive for companies looking for stable and efficient payment solutions in international markets.
For individuals, RLUSD offers a safe way to enter the world of cryptocurrencies without the worry of market volatility, facilitating the daily use of cryptocurrencies for purchases, remittances or savings.
According to a Ripple announced, RLUSD would especially target markets in regions such as APAC (Australasia, East Asia, South Asia and South-East Asia), the European Union and Australia.
8. Did RLUSD need regulatory approval?
The RLUSD stablecoin has received approval from the New York State Department of Financial Services (NYDFS). This license is crucial to operate legally in one of the most regulated financial markets in the world, providing RLUSD with a solid foundation for adoption in the financial sector.
The regulation not only validates the operation of RLUSD, but also ensures compliance with anti-money laundering (AML) regulations and know your customer (KYC)raising security and trust standards on the platform.
This fiduciary license would imply a “more robust strategy” than issuance through a money transfer license (MTL) such as those that Circle and Tether have, according to what voiced by Ripple.
9. How can you acquire RLUSD?
In principle, RLUSD can now be acquire on exchanges such as Uphold, Bitso, MoonPay, Archax and CoinMENA, as reported by CriptoNoticias.
However, Ripple plans to expand the availability of RLUSD In the coming weeks it will be added to platforms such as Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve and Zero Hash, thus increasing its accessibility.
Ripple’s strategy is to ensure that RLUSD is available on a variety of platforms operating in different jurisdictions, making it easier to acquire and use globally, especially in emerging markets where the need for stable payment solutions is high.
10. What are RLUSD’s main competitors?
In the stablecoin market, RLUSD seeks to compete directly with Tether’s USDT and Circle’s USDC. USDT is the leader in terms of market capitalization and adoptionbeing widely used in exchanges and DeFi applications.
Of the $203,527 million in stablecoin market capitalization, USDT has 69% of dominance with $140 billionaccording DeFiLlama data.
USDT market capitalization. Source: DeFiLlama.
USDC, for its part, is the second largest stablecoin on the market, backed by companies such as Coinbase, It has 42 billion dollars in market capitalization.
In this way, RLUSD represents a new step for Ripple in its global expansion. Its support in dollars and liquid assets, combined with its interoperability in Ethereum and XRP Ledger, offers a stable alternative for cross-border payments. With regulations in favor and its launch on key exchanges, Ripple seeks to position its stablecoin as a relevant player in the market.
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