Ripple has taken a significant step forward in its stablecoin journey by burning 64 RLUSD coins at the RLUSD Treasury as part of its ongoing beta testing phase. This move underscores Ripple’s commitment to the development and launch of RLUSD, which is expected to be fully rolled out by the end of 2024.
The RLUSD stablecoin is not intended to replace XRP but rather to work alongside it. Ripple aims to establish a strong presence in the highly competitive stablecoin industry, which is projected to be worth $2.8 trillion by 2028.
While the burning of RLUSD tokens may not be a groundbreaking strategy, it exemplifies Ripple’s dedication to refining RLUSD before its public release. This ensures that the stablecoin meets the highest standards of stability and performance. During the beta testing phase, Ripple has made it clear that RLUSD is designed to complement XRP within their ecosystem.
It is important to note that initially, RLUSD will only be available to institutional investors. Retail access to RLUSD will eventually be offered, but only through intermediaries. This phased approach demonstrates Ripple’s focus on establishing a solid foundation for RLUSD, ensuring scalability and security before opening it up to a wider audience.
Ripple’s commitment to scalability is further demonstrated by the XRP Ledger trust line valued at $1 trillion for RLUSD. This showcases Ripple’s dedication to creating a stablecoin that can handle large transaction volumes while providing a secure platform for users.
In contrast, XRP has faced challenges in the market. The cryptocurrency recently experienced a decline, losing all the gains it had made in the previous 48 hours and falling below the $0.60 mark. Currently, XRP is trading around $0.5878.
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