In a significant recent development, Ripple has decided to delay the launch of its much-anticipated RLUSD stablecoin. The company is currently awaiting the final approval from the New York Department of Financial Services (NYDFS). Ripple has been transparent about the situation, sharing updates via an official post on platform X, stating, “Despite some speculation, $RLUSD isn’t launching today. We’re in lockstep with the NYDFS on final approval and will share updates as soon as possible.”
The decision to postpone the launch underscores Ripple’s commitment to regulatory compliance and its intention to operate under the supervision of the NYDFS. The company reassured its community and stakeholders that it remains fully committed to upholding the highest regulatory standards, encouraging everyone to stay tuned for further announcements.
XRP Faces Market Fluctuations
In the wake of the announcement regarding the RLUSD stablecoin, XRP, Ripple’s native cryptocurrency, experienced a notable downturn. Previously riding high in a broader altcoin rally, XRP’s price fell to $2.31 within a 24-hour timeframe. This decline resulted in XRP losing its position as the third-largest cryptocurrency by market capitalization, overtaken by Tether.
Currently, XRP is trading at $2.39, reflecting a decrease of over 6% in the last 24 hours. The digital asset’s market cap now stands at $135 billion, marking a decline of more than 7% over the same period. Despite the setback, XRP continues to maintain its lead over Solana (SOL) and Binance Coin (BNB), even as the latter reached an all-time high on December 4.
Understanding the Increased Selling Pressure
The postponement of the RLUSD launch has contributed to increased selling pressure within the market. Speculations of panic selling have emerged, further amplifying the market’s response. Trading volumes have dropped significantly, from over $32 billion to $16 billion on December 4, indicative of a cooling-off period for the cryptocurrency market as investors reassess their positions.
The RLUSD stablecoin is designed to be a 1:1 U.S. dollar-backed digital asset, fully supported by U.S. dollar deposits, short-term U.S. government Treasury securities, and cash equivalents. Since early August, the RLUSD stablecoin has been undergoing beta testing on both the XRP Ledger (XRPL) and the Ethereum mainnet. Ripple has outlined plans to gradually expand RLUSD’s reach, integrating it with additional blockchains and decentralized finance (DeFi) protocols. The stablecoin is poised to play a pivotal role in the broader Ripple ecosystem, enhancing its utility and adoption.
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