In a recent development related to Ripple’s foray into the stablecoin market, the company has burned a small batch of 185 Ripple USD (RLUSD) tokens. The burning process, confirmed on August 29th, involved sending the tokens back to the issuer account, effectively removing them from circulation on both the XRP Ledger and Ethereum.
This news comes just weeks after reports surfaced on August 11th, indicating that Ripple had begun private beta testing of RLUSD. The initial minting process involved creating the 185 tokens that were subsequently burned.
Limited Access for Now, Public Launch on the Horizon
Currently, access to RLUSD is restricted to select enterprise partners of Ripple. This limited rollout underscores the ongoing beta phase, where the company gathers valuable insights and data before launching the stablecoin to the broader public. As a result, RLUSD is not yet available for trading on any cryptocurrency exchanges.
Focus on a Smooth Public Debut
Following the beta testing period, Ripple plans to make RLUSD widely accessible. The burning of the initial batch signifies the company’s commitment to a smooth public launch. By eliminating any potential issues with the initial tokens, Ripple aims to ensure a successful debut for RLUSD.
Entering a Crowded Market, But Room for Growth?
The announcement of RLUSD back in April generated significant interest within the cryptocurrency community. While competitors like Tether and Circle already hold major positions in the stablecoin market, Ripple appears confident in the potential for further expansion. Industry experts predict significant growth in the stablecoin market, with projections suggesting a potential valuation of $2.8 trillion by 2028.
Not a Replacement for XRP
Ripple has also addressed concerns regarding RLUSD potentially replacing their native token, XRP. Company executives have been clear that the two tokens serve distinct purposes within the Ripple ecosystem.
Looking Ahead
The recent burning of RLUSD tokens signifies Ripple’s ongoing efforts to refine their stablecoin offering. While the limited beta rollout restricts access for now, the future holds promise for a wider release. With the stablecoin market poised for substantial growth, Ripple’s RLUSD could become a significant player in the years to come.
