TL;DR
- Ripple has minted 13 million RLUSD stablecoins across the XRP Ledger and Ethereum networks, following NYDFS approval, positioning RLUSD as a fully regulated stablecoin in the U.S.
- The minting process involved 2.6 million RLUSD on the XRP Ledger and 11.3 million RLUSD on Ethereum, showcasing the efficiency and cost-effectiveness of both networks.
- RLUSD is fully backed by U.S. Treasuries, ensuring compliance with key financial regulations, and is expected to have significant implications for the crypto market.
Ripple Labs has taken a significant step forward in the stablecoin market by minting 13 million RLUSD tokens across the XRP Ledger and Ethereum networks. This development follows the recent approval from the NYDFS, positioning RLUSD as one of the few fully regulated stablecoins in the United States.
The minting of RLUSD marks a crucial phase in Ripple’s mainnet testing, showcasing the scalability and cost-effectiveness of both blockchain networks.
🚨🚨🚨🚨🚨🚨 2,600,000 #RLUSD transferred from RLUSD Treasury to RLUSD Treasury.https://t.co/SKvQRM88js
— Ripple Stablecoin Tracker (@RL_Tracker) December 12, 2024
Details of the Minting Process
The minting process involved the creation of 13.9 million RLUSD tokens, with 2.6 million RLUSD minted on the XRP Ledger and the remaining 11.3 million RLUSD on the Ethereum network.
The XRP Ledger demonstrated its efficiency, with minting costs totaling just 0.00048 XRP, while the Ethereum network required 0.00161 ETH for the larger batch. These tests were essential to ensure the stablecoin’s functionality and reliability before its official release.
Regulatory Compliance and Market Position
RLUSD is fully backed by onshore U.S. assets, specifically U.S. Treasuries held in regulated custody. This structure ensures compliance with key financial regulations, including the Dodd-Frank Act and Basel III standards.
Unlike other stablecoins such as USDT and USDC, which have faced regulatory scrutiny, RLUSD’s transparent operations and real-time auditing capabilities make it a reliable asset for financial institutions. The NYDFS approval sets RLUSD apart, providing a competitive edge in the highly regulated U.S. market.
Implications for the Crypto Market
The introduction of RLUSD is expected to have significant implications for the crypto market. As a fully regulated stablecoin, RLUSD offers a secure and compliant option for investors and financial institutions.
The successful minting and testing of RLUSD highlight Ripple’s commitment to innovation and regulatory compliance. This development also coincides with a notable increase in the market value of XRP, Ripple’s native cryptocurrency, which has risen from $1.90 to $2.35 during this period.
Ripple’s minting of 13 million RLUSD stablecoins across the XRP Ledger and Ethereum networks marks a pivotal moment in the stablecoin market. With its strong regulatory compliance and innovative approach, RLUSD is poised to become a key player in the cryptocurrency ecosystem.
