Ripple (XRP) is gearing up to launch its widely anticipated stablecoin, RLUSD. The company’s foray into the stablecoin realm is dubbed iconic, considering the token is still under strict scrutiny from the US SEC.
The launch of RLUSD is set to help Ripple in several diverse ways. At the same time, the development also intends to bolster XRP’s price, catapulting it to new highs. Will XRP finally soar past $0.65 to hit $1? Let’s find out.
Also Read: Ripple (XRP): AI Predicts Price For August 10
RLUSD Launch: How Will It Impact XRP?
Ripple has lately been exploring the competitive realm of stablecoins. The firm is gearing up to launch RLUSD, its stablecoin, which is set to compete with sectoral behemoths such as USDT and USDC.
The idea of this stablecoin was first introduced at the Amsterdam XRP ledger community summit. Hints suggest that the launch will happen sometime in 2024, taking the stablecoin world by storm.
Benefits of RLUSD for Ripple
The launch of RLUSD is crucial for Ripple in many ways. For instance, it will help streamline cross-border payments by facilitating an XRP ledger. Per the new website launched for RLUSD, the stablecoin is set to play a critical role in determining Ripple’s future path, including XRP’s price trajectory and its adoption on a global scale.
CEO’s Perspective
Speaking about its stablecoin, Ripple’s CEO, Brad Garlinghouse, shared how the launch of the stablecoin will help Ripple solidify its position in the DeFi and institutional realms.
“This move extends Ripple’s reach into both the institutional and DeFi realms, diversifying use cases and enhancing our payment infrastructure to bring the worlds of traditional and decentralized finance closer together.”
Financial Backing of RLUSD
Concerning RLUSD financial support, Ripple shared via X how the stablecoin will be backed with US dollars, government bonds, and cash equivalents to provide robust direction to the endeavor.
“Ripple’s stablecoin will be 100% backed by US dollar deposits, U.S. government bonds, and cash equivalents, and Ripple pledges transparency with monthly third-party attestations, ensuring trust and reliability.”
Ripple’s development of stablecoins aligns with the firm’s view of making XRP a pivotal institutional choice. As explained by Dilip Rao, their former head of infrastructure innovation, Ripple designed the token for institutional adoption.
RLUSD and XRP: Surge To $1 Possible Post Stablecoin Launch?
The launch of RLUSD may help Ripple note a significant surge in its adoption metrics. With cross-border payments in the mix, a large influx of funds could enter the XRP realm, boosting its price prospects. As stablecoins attract more users, the element may bode well in liquidity, bolstering XRP’s price up a notch.
Market Volatility and Stablecoins
At the same time, stablecoins are immune to market volatility as they are pegged to the dollar. This means seasoned investors can potentially pivot to Ripple’s stablecoin to enjoy the best of both worlds.
With the US SEC case inching towards its end, if Ripple manages to win, it may usher in a catalytic price surge for XRP, possibly helping the token ascend to the $1 mark.
XRP Price Prediction
According to CoinCodex, XRP may hit the $1 mark by 2025. However, if positive developments continue to help Ripple, it may encounter an early price surge to $1.
Also Read: Ripple: AI Predicts XRP’s Price Post Its Stablecoin Release
“The XRP price prediction for 2025 is currently between $0.317744 on the lower end and $1.576559 on the high end. Compared to today’s price, XRP could gain 206.68% by 2025 if it reaches the upper price target.”
We’re excited to see how the market will evolve. Join us on this journey by exploring more informative articles.
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