What to know:
- Over $100 million in Ripple USD (RLUSD) has been issued since April 1, indicating strong interest in the stablecoin.
- RLUSD is pegged 1:1 to the U.S. dollar and backed by deposits, Treasuries, and cash equivalents.
- A security feature on the XRP Ledger allows issuers to reclaim RLUSD tokens under specific conditions, improving compliance.
Over $100 million in Ripple USD (RLUSD) has been minted since April 1, reflecting rising demand for this new stablecoin. This amount is among the highest recorded in recent months.
Recently, a $50 million tranche of RLUSD was issued on Tuesday, followed by another $50 million in late Wednesday. Ripple included the stablecoin in its official payment system, with payment processors BKK Forex and iSend already adopting it.
Industry experts believe that RLUSD will impact crypto market dynamics, as competitors like USDT and USDC may face challenges from Ripple’s offering.
XRP Ledger-based decentralized finance (DeFi) platforms are anticipated to gain traction as RLUSD’s adoption rises, possibly increasing XRP token demand.
RLUSD maintains its peg through a 1:1 reserve system. Each token corresponds to an equivalent dollar value. Users can either mint RLUSD by depositing dollars with authorized partners or redeem them for cash.
To enhance security for institutional users, an update on the XRP Ledger introduced a ‘clawback’ feature enabling issuers to reclaim tokens under certain conditions, typically for compliance, fraud recovery, or unintended errors.
