Over $ 100 million in Ripple USD (RLUSD) has been issued since April 1, among the highest levels in recent months, as the demand for the relatively new stableecoin warms up.
A $ 50 million tranche was issued by RLUSD earlier this week on Tuesday with another $ 50 million late Wednesday. It came when Ripple added stableecoin to his official payment product, with payment providers BKK Forex and has already been said to use stableecoin.
Industrial leaders expect RLUSD to further change crypto market dynamics, where Upstarts Tether (USDT) and USD COIN (USDC) could see competition from Ripple’s product.
The XRP Ledger-based decentralized economic (defi) applications could be a cohort to look at as RLUSD gets traction on different platforms, increasing the XRP-token demand.
RLUSD is a stablecoin attached 1: 1 to the US dollar offered on the XRP headbook and Ethereum Blockchain. It is fully supported by US dollar deposits, short -term US treasuries and cash equivalents.
To maintain its PEG, RLUSD is dependent on a 1: 1 reserve system -each token matches a similar FIAT value.
Users can mint rlusd by depositing dollars in authorized partners issuing tokens or burning RLUSD to redeem cash. Market Arbitrage helps stabilize its price: If RLUSD trades under $ 1, dealers buy it to redeem on level, which increases demand; If they over $ 1, they coinse more, which increases the supply.
Security features make RLUSD appealing to institutional users. An XRP headbox change in January saw a “clawback” feature go live on the network so the issuer can recover or “itch back” certain tokens, such as RLUSD, from users’ wallets under specific conditions.
This feature is typically implemented for regulatory compliance, to recover assets in case of fraud, illegal activities, or when the tokens are sent to unintended addresses.
