Ripple has transferred several amounts in RLUSD stablecoin from its Treasury to test the functionality and the liquidity before the official launch.
According to Ripple Labs president Monica Long, the project is operationally ready but awaiting regulatory approval.
Pending the much-anticipated launch of the RLUSD stablecoin, CNF has discovered that Ripple recently engaged in massive transfers, moving 294,000 and 78,500 in RLUSD tokens from its Treasury to an unknown wallet. “Before the dust could settle,” Ripple transferred additional amounts of 68,500, 58,500, and 88,500 RLUSD.
Initially, this triggered speculation within the crypto space. However, experts have explained that this could be part of the process to test the functionality and prepare liquidity ahead of the big day.
Investigating previous activities, we discovered that the blockchain company had moved a staggering amount of 470 million XRP tokens ($250.45 million) on November 6. Later, the wallet receiving these amounts transferred 100 million XRP to a different address.
Currently, Ripple is waiting for regulatory clearance from the New York Department of Financial Services to start rolling the stablecoin to the public. Meanwhile, the president of Ripple Labs, Monica Long, believes that they are operationally ready. Adding to this, Ripple has unveiled several top exchanges and partners that would host this stablecoin after the official launch, according to a CNF report.
Discussing this initiative in an interview, Long disclosed that Ripple aims to leverage its reputation as an integral component of the payment industry to push this project to an extensive length within the Web3 space.
For RLUSD and stablecoins generally, we have validated their utility with payments. We’re also believers in this broader trend of real-world asset tokenization. When we think beyond tokenizing money to different instruments and capital markets like securities and bonds, real estate and other assets, you need a stablecoin that’s trusted and very reliable, very robustly managed for on and offramps as well.
More About RLUSD and XRP’s Reaction
According to our research, the value of this stablecoin would be backed by the U.S. Treasuries, dollar deposits, and cash equivalents. For the sake of transparency, a third-party accounting firm would audit the reserve with monthly attestations expected to be reported by Ripple.
Ripple’s decision to roll out RLUSD is part of the company’s long-term vision to expand into other areas of the crypto economy. Meanwhile, the $160 billion stablecoin market is currently dominated by Tether’s USDT and Circle’s USDC. According to Broker Bernstein, this market could grow to $2.8 trillion by 2028.
A recent blog post also shows that RLUSD is being subjected to several tests to ensure that it meets the highest standard of security and reliability.
Ripple USD is currently in its beta phase and is being rigorously tested by our enterprise partners. This phase is crucial for ensuring that the stablecoin meets the highest standards of security, efficiency, and reliability before it becomes widely available, and after receipt of regulatory approval.
Fascinatingly, the excitement around this development has indirectly affected the XRP price as our market data shows a current bullish trend. At press time, XRP was trading at $0.55 after surging by 5.6% in the last seven days.
According to an analyst, the asset could surge to $4 once it firmly retests and holds its position above the $0.94 resistance level.
