What is RLUSD? A Comprehensive Guide to Ripple’s Stablecoin
In June 2024, Ripple Labs stepped into the stablecoin market with its newly introduced stablecoin named RLUSD. Like several other stablecoins, RLUSD is also pegged to the US Dollar in a 1:1 ratio. As the name suggests, stablecoins are stable and less volatile than normal cryptocurrencies, as they are supported by other powerful currencies such as the USD.
RLUSD was approved by the New York Department of Financial Services (NYDFS), which makes it a legitimate coin. In this article, you will learn more about RLUSD to understand its potential to stand big in the market.
RLUSD: Key Features
RLUSD is the native stablecoin introduced by Ripple Labs, and it is pegged to the USD. Its value comes from the U.S. dollar deposits, short-term U.S. government treasuries, and other cash equivalents used to back it.
The Key Features Of RLUSD Are Given Below
- RLUSD has a predictable value as it is pegged to the strongest fiat currency in the world. That means, its price will not see a steep fall, whatever the market condition is.
- RLUSD runs on both XRP Ledger and Ethereum blockchains. This gives RLUSD a wider platform to connect with smart contracts and DeFi protocols.
- RLUSD is compliant with the regulations of the authority.
- RLUSD has programmable smart contracts, compatibility with digital wallets, and adaptability for decentralized applications. This makes it an asset that can be easily used for innovative decentralized financial products and services.
- Transactions using RLUSD are settled instantly and in real time. This makes it a useful asset.
RLUSD: Use Cases
RLUSD has several use cases that are making it the most sought-after digital currency.
- RLUSD can be used for cross-border payments as it is a digital currency that is not bound by any geographical boundaries. Unlike fiat currencies like USD, transactions can be made instantaneously and at lower fees. Being a stable currency, users need not worry about the token being affected by market conditions.
- This stablecoin has high liquidity. Therefore, it is a great tool for trading and a good addition to your portfolio. It is used as a trading pair for several cryptocurrencies due to its stable outlook.
- Since it is a cost-effective asset that is used for payments, merchants use it for payments to navigate the high cost of traditional payment methods. It being a decentralized currency also makes it do away with delays in payments. RLUSD’s integration with the XRP Ledger and Ethereum blockchains makes it compatible with a wide range of wallets and payment solutions.
- RLUSD’s multi-chain compatibility makes it accessible to various DeFi protocols. You can lend, borrow, or indulge in yield farming. Its stability makes it a reliable asset.
RLUSD: Current Market Trends
The price of RLUSD will be $1 as it is directly pegged to this fiat currency. Its market capitalization is $1,027,849,012.32, 24-hour trading volume is $109,813,155.36, total supply is 1,027,698,082.54 RLUSD, and the currency circulating supply is 1,027,698,082.54 RLUSD. RLUSD has 6042 holders. The 10 holders hold 84.57% of the total supply of the token.
RLUSD is listed on several exchanges, such as Alchemy Pay, Bitget, Bitmex, Gemini, and Flowdesk.
RLUSD: Latest News
Recently, a rumor surfaced suggesting that Brad Garlington, the CEO of XRP, saying RLUSD is going to replace XRP for good. This piece of information had triggered a discussion among crypto enthusiasts. However, as RLUSD and XRP serve different purposes, some analysts maintain a position that one cannot be replaced by the other. Nevertheless, the fact that RLUSD is seminal in liquidity provision, cross-border transactions, institutional and retail settlements, and multi-fiat onboarding cannot be ignored.
The outcome of this decision is yet to be known, but it is true that this news has shed light on RLUSD, making it more visible.
The Bottom Line
It goes without saying that RLUSD is gaining prominence in the market due to its overall stability and interoperability. It is also giving confidence to the users, thanks to its varied use cases. Trends signify that the coin will continue to be prominent in the future, empowering users to invest in decentralized finance.
Crypto & Blockchain Expert