- Ripple burned 53M RLUSD across XRP Ledger and Ethereum in preparation for the stablecoin’s launch.
- RLUSD’s backing includes U.S. Treasury bills and dollar deposits.
- Ripple’s RLUSD awaits NYDFS approval, promising enhanced market transparency.
Ripple, a popular blockchain software company, recently burned around 53 million RLUSD tokens. These burns happened on two ledgers, XRP and Ethereum, as the company gears up for the highly anticipated RLUSD—its USD-pegged stablecoin. This event has raised questions for Ripple about its supply management plan and how it can affect the market.
Burn Breakdown Across XRP Ledger and Ethereum
The token burn was conducted in two separate transactions on November 17, 2024. On the XRP Ledger, Ripple eliminated 40.17 million RLUSD tokens. Shortly after, another burn of 14 million RLUSD was carried out on the Ethereum blockchain. This dual-platform approach reflects the company’s plans to issue stablecoin on both networks.
The RLUSD will be pegged to the US Dollar and supported by short-term T-bills, deposits, and cash. The company has also declared its intention to disclose information to the public, which will be done monthly by BPM, an independent accounting firm based in San Francisco. Ripple aims to comply with regulators and has vast financial experience, which seeks to reverse previous failings in the industry.
Regulatory Approval and Market Readiness
While RLUSD is fully functioning, Ripple has the authority to launch the stablecoin with the approval of the New York Department of Financial Services (NYDFS). Ripple’s management has hinted at launching a payment system before 2024, indicating a cautious approach in a volatile market segment. They are actively working to ensure regulatory compliance.
The burn coincides with increasing anticipation among investors and crypto enthusiasts. By reducing the token supply, Ripple aims to manage liquidity and create a stronger foundation for RLUSD’s market entry. Market participants view the burns as a strategic move to bolster confidence in Ripple’s ecosystem, particularly as XRP gains traction.
Ripple’s Vision for RLUSD in the Stablecoin Market
Stablecoins are still essential in the cryptocurrency world, although they have faced significant challenges in recent years, such as the failure of large-scale projects. Ripple’s RLUSD intends to establish credibility and transparency in the current uncertain environment. By aligning its operations with rigorous financial practices and regulatory standards, Ripple seeks to differentiate RLUSD from competitors.
RLUSD’s legitimacy will be reinforced through monthly audits, ensuring stability for users and investors. Ripple’s launch on XRP Ledger and Ethereum reflects its strategy to expand its reach. RLUSD’s focus on transparency, compliance, and strategic supply management has made it a highly anticipated stablecoin of the year, with regulatory approval pending.
The post Ripple Burns 53 Million RLUSD Tokens Across XRP Ledger and Ethereum appeared first on Crypto News Land.
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