Since April 1, over $100 million worth of Ripple USD (RLUSD) has been issued, marking one of the highest levels in recent months. The demand for this relatively new stablecoin is increasing rapidly.
Earlier this week, a $50 million tranche of RLUSD was issued on Tuesday, followed by another $50 million late on Wednesday. Ripple has officially added the stablecoin to its payments product, with payment providers BKK Forex and iSend already utilizing it.
The introduction of RLUSD into the market is expected to impact the dynamics of the crypto market, potentially posing competition to established stablecoins like tether (USDT) and USD Coin (USDC).
As RLUSD gains traction on various platforms, particularly on the XRP Ledger, decentralized financial (DeFi) applications based on XRP could see increased demand, further boosting the value of the XRP token.
RLUSD is a stablecoin that is pegged 1:1 to the U.S. dollar and is available on the XRP Ledger and Ethereum blockchain. It is backed by U.S. dollar deposits, short-term U.S. Treasuries, and cash equivalents.
The stability of RLUSD is maintained through a 1:1 reserve system, where each token corresponds to an equivalent fiat value. Users can create RLUSD by depositing dollars with authorized partners, or redeem cash by burning RLUSD tokens. Market arbitrage helps to stabilize the price of RLUSD.
With security features that appeal to institutional users, RLUSD includes a “clawback” feature on the XRP Ledger, allowing the issuer to reclaim tokens under specific conditions for regulatory compliance purposes or in cases of fraud or illegal activities.
