The post Ripple Produces 600,000 RLUSD Tokens While Strategically Limiting Circulating Supply appeared first on Coinpedia Fintech News
Ripple, the blockchain-based digital payment company, has made headlines with the creation of 600,000 new RLUSD tokens. Despite this production, the cautious move by Ripple has left many wondering if Ripple is carefully managing the coin’s value and making sure it stays strong in the competitive crypto market.
Ripple Produces 600,000 RLUSD Token
Ripple’s RLUSD stablecoin currently holds a market cap of 53.1 million tokens, even after the recent creation of an additional 600,000 tokens. This indicates that despite producing more tokens, Ripple is maintaining a steady supply.
The company has secured approximately $83 million in reserves, which are backing over $77.2 million worth of RLUSD tokens. This means the stablecoin is 7% over-collateralized, reflecting Ripple’s effort to provide stability and reliability to the token
Furthermore, Ripple has promised to release its first attestation report within 30 days of RLUSD’s public launch. This report will detail the composition of the assets backing the stablecoin, adding transparency to Ripple’s operations and reinforcing its credibility.
Ripple’s Master Plan
Despite the recent creation of more tokens, analyst Arthur believes the company is controlling the supply of RLUSD to keep its value stable. If too many tokens are released too fast, could drop their price, which Ripple wants to prevent.
By limiting the supply now, Ripple may be positioning itself for future conditions that could drive higher demand and adoption of RLUSD.
As Ripple faces robust competition from major players like Circle and Tether, its careful supply management and growing presence in the market could make RLUSD a strong contender in the stablecoin space.
RLUSD’s Role in the XRP Ecosystem
In addition, Ripple President Monica Long believes RLUSD could set a new standard for stablecoins, citing its strong regulatory compliance as a key advantage. By adding RLUSD to the XRP ecosystem, Ripple hopes to increase XRP’s usefulness and improve liquidity for large institutional trades.
This move could make the network even more attractive, especially after Ripple’s partial legal victories, which clarified XRP’s classification in certain situations.