Ripple has progressed its stablecoin initiative by burning 185 Ripple USD (RLUSD) tokens from circulation. This occurred at the RLUSD Treasury, where the tokens were effectively withdrawn from circulation by being sent back to the issuer’s account.
Ripple Advances Stablecoin Launch with 185 RLUSD Burn
Recent data from XRPScan reveal that Ripple initiated the burn of 185 RLUSD tokens, a move underscoring its strategic approach to managing its stablecoin supply. This development follows the minting of these tokens on the XRP Ledger, marking a phase in the pilot testing of its stablecoin technology.
Additionally, Ripple’s decision to burn tokens ensures the crypto company maintains control over the initial supply and prevents premature circulation. This aligns with regulatory and operational precautions.
This process involved sending the minted RLUSD tokens back to the issuer account, effectively reducing the circulating supply to zero.
Background and Development of RLUSD
The RLUSD tokens were minted on August 22, with Ripple creating 185 tokens on the XRP Ledger and 200 RLUSD on the Ethereum network. This dual-platform approach signifies intent to test interoperability and stability across blockchains. The tokens are pegged 1:1 to the USD, ensuring each token represents real dollar value held in reserve.
The XRP company has committed to maintaining high transparency standards, with the stablecoin reserves being audited by an independent third-party firm. In addition, monthly attestations will be provided to verify the integrity of the backing assets.
Moreover, CoinGape recently reported that Ripple has secured partnerships with major financial institutions across various regions, including China, Hong Kong, and the Philippines. More so, banks such as the Agricultural Bank of China and Standard Chartered Bank are integrated into the network.
XRP Market Price Outlook
The XRP price trend exhibit a nuanced market response, with recent activities hinting at potential upward movements. As of the latest trading sessions, XRP has seen fluctuations below $0.6 but remains poised for a breakout.
CoingGape price prediction suggests that if XRP can sustain a daily close above key resistance levels, it might confirm a bullish pattern, potentially elevating the price towards $1.
At the time of writing, the XRP price is $0.5731, a 0.1% decrease in the last 24 hours. The crypto trading volume has also declined by 32% to $1,113,414,139.
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