Ripple Burns Majority of USD Tokens – Stablecoin Announcement Incoming?

• Ripple has been testing its RLUSD stablecoin with select enterprise partners and plans to expand it to multiple blockchains.
• Ripple’s President, Monica Long, suggested that the public launch could happen by the end of 2024, positioning the stablecoin for broader enterprise use.

Ripple has burned nearly 46.7 million RLUSD tokens, triggering speculation about the company’s plans for an upcoming stablecoin. According to the Ripple Stablecoin Tracker on X (formerly Twitter), the tokens were destroyed within a span of just 24 hours.

Ripple’s RLUSD Launch Soon?

The move has caught the attention of many as it is believed that Ripple could soon unveil its much-awaited dollar-pegged stablecoin. However, Vet, a decentralized unique node list (dUNL) validator on the XRP Ledger (XRPL), provided a different take. He emphasized that securing regulatory approval from the New York State Department of Financial Services (NYSDFS) remains a critical challenge for the company.

For context, Ripple entered the stablecoin market recently and indicated its intentions for rising demand in blockchain-based assets that are pegged to the U.S. dollar, reported CNF. In April of this year, the San Francisco company announced its plan to consider offering stablecoins as part of its overall blockchain strategy.

Ripple is entering a highly competitive market that is dominated by Tether (USDT) and Circle (USDC). Tether recently broke the $130 billion market capitalization, and Circle’s USDC is worth nearly $40 billion. Ripple seems to be positioning its stablecoin as a direct competitor, focusing on enterprise-grade use cases.

In August, Ripple started testing its stablecoin product with select enterprise partners, per the CNF report. The initiative involves deploying the stablecoin on several networks, including the XRP Ledger and Ethereum. The firm has also hinted at adding support for other blockchains in the future, further expanding its potential reach, reported CNF.

Executive Comment On Launch Date

Ripple President Monica Long recently declared that several enterprise clients are already using the stablecoin in the pre-launch stages. She expressed optimism about its broader rollout, which she indicated could happen before the end of 2024. While Ripple has not provided a specific timeline, Long’s comments suggest that the company is nearing the product’s public debut.

This latest development has fuelled market speculation regarding Ripple’s stablecoin strategy, especially considering the RLUSD token burn. The scale of the burn and Ripple’s continuous preparations suggest that significant things are in the pipeline. Nonetheless, until regulatory approvals are received, the official launch date is still unknown.

Ripple’s entry into the stablecoin market could lead to enhanced adoption of the XRP Ledger and strengthen the company’s position as a leader in cross-border payments. Furthermore, RLUSD’s usage alongside XRP could bring in further institutional participation as the need for global payments grows.