Ripple Mints Another 1.35M RLUSD in 24 Hours, What’s Next?
Ripple has recently minted an additional 1.35 million RLUSD on the XRP Ledger, part of a broader strategy to ensure the stablecoin’s performance and reliability upon launch. This development comes as Ripple prepares for a critical phase of regulatory assessments and market integration.
Ripple Ramps Up RLUSD Minting, Adds 1.35M Tokens
Ripple Labs has been intensifying its RLUSD stablecoin minting efforts, with 2.45 million RLUSD minted in October alone. The minting occurred across four tranches, with the latest involving the creation of 1.35 million RLUSD on the XRP Ledger. This substantial tranche marks the most significant issuance thus far. More so, it reflects the XRP company’s efforts to boost liquidity and test RLUSD in various conditions.
In addition to the 1.35 million tokens, the XRP company previously minted smaller batches, including a recent 80,000 RLUSD stablecoin mint. These activities suggest that the company is gearing up for the release of RLUSD, subject to regulatory approval.
Concurrently, to ensure a balanced approach, Ripple has been minting RLUSD on both the XRP Ledger (XRPL) and Ethereum networks. The distribution of tokens across these two blockchains allows for better scalability. Also, it ensures the stablecoin can function efficiently in a cross-chain environment.
While the majority of the tokens have been issued on the XRPL, smaller amounts were minted on Ethereum, including a 500,000 RLUSD tranche.
Despite the progress in minting, the full launch of RLUSD remains pending regulatory approval. The company is keen to ensure that the stablecoin complies with U.S. regulations, particularly given the recent legal actions faced by other stablecoin issuers like Paxos and TrueUSD.
The XRP company has been cautious following its legal battle with the U.S. Securities and Exchange Commission (SEC). The company is reportedly awaiting clearance before RLUSD can be officially released. At the same time, Ex-SEC lawyers have hinted at the agency’s advantage in the Ripple Vs SEC case appeal, sparking discussions as the lawsuit appeal deadline approaches.
Monica Long, President of Ripple, confirmed that regulatory approval is necessary before the stablecoin’s full integration into the market. This move aims to prevent further legal complications and ensure the long-term viability of RLUSD.
Market Speculation Amid ETF Developments
The recent developments surrounding RLUSD minting coincide with heightened interest in Ripple’s ecosystem, especially following the filing of a Spot XRP ETF by Bitwise Asset Management. Should XRP ETF gain approval, there is speculation that the price could see a surge similar to BTC’s 47-billion-dollar inflows.
Projections suggest that an influx of capital into an XRP ETF could lead to a 150-300% price increase, potentially pushing XRP price to $1.50 or even $2.49.
Following Bitwise’s XRP ETF filing, analyst Ali Martinez highlighted the surge in whale activity commenting,
“No wonder XRP whales went on a buying spree!”
While current whale acquisitions remain unclear, last week saw purchases, with XRP whales acquiring 470 million tokens valued at approximately $276 million.
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