Ripple’s RLUSD stablecoin is undergoing extensive testing as part of the company’s look to extend its reach into the stablecoin market completely.
Initially announced in April, RLUSD began beta testing in August but is currently accessible only to the company’s enterprise partners. The increased minting activity suggests that Ripple is inching closer to an official launch.
Notably, according to the RLUSD tracker, since September 28, a total of 1.7 million RLUSD tokens have been minted across both the Ethereum blockchain and the XRP Ledger.
Significant Minting Surge
Notably, a major surge in RLUSD minting occurred within a 24-hour window on September 29, with 800,000 tokens created during this period. Vet, an XRPL dUNL Validator, reported that 99% of the total RLUSD supply was minted just a day before his update.
As of his report, the total RLUSD supply had reached 812,034 tokens across Ethereum and the XRP Ledger.
The total supply of RLUSD is 812,034 across ETH and XRPL.
In the last ~24h in total 800k RLUSD got minted on Ethereum and #XRP Ledger combined.
99% of the total supply was minted in the last 24h.
— Vet 🏴☠️ (@Vet_X0) September 29, 2024
Despite the heightened minting activity, RLUSD remains unavailable for public trading. Ripple has made it clear that they are awaiting regulatory approval among other things before opening the stablecoin to broader markets.
However, the company continues to conduct tests, burning small amounts of RLUSD, the least being 24 tokens, as part of its methodical private beta testing process.
Costs and Reserve Attestations
While the testing continues, discussions have arisen regarding the transaction fees associated with RLUSD on both Ethereum and the XRP Ledger. According to Vet, transaction costs are higher on Ethereum than on XRP Ledger.
Despite the increased costs, Ripple is reported to have overpaid for gas fees on both platforms during the testing process, likely as a precautionary measure.
In response to concerns about the stability and backing of RLUSD, Vet also highlighted that these are merely test runs. Ripple has committed to providing monthly reserve attestations upon the stablecoin’s official launch, which is expected to address concerns regarding its backing.
Ripple’s Shift in Strategy
Ripple’s stablecoin initiative appears to be part of a larger strategic shift. Ripple’s CTO, David Schwartz, had noted that XRP may be better suited for payments on the XRP Ledger than RLUSD.
This comment comes as Ripple expands its focus toward Ethereum and smart contract integration. Additionally, the company has been conducting stock buybacks.
Monica Long, Ripple’s President, also emphasized the different roles of RLUSD and XRP within Ripple’s ecosystem. While XRP continues to serve as a primary digital asset for payments, RLUSD is designed to facilitate rapid settlement and integration into traditional financial systems.
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