Tether, RLUSD, and What’s Next for Digital Money

Crypto enthusiasts believe that stablecoins are a better fit. They are pegged to fiat currencies in 1:1. Tether tops the chart with USDT and is pegged to the US Dollar in the said ratio. It has ranked third globally in terms of market cap and has attracted investors from different regions.

The market for Tether is constantly growing. It recently announced a partnership with Flipster and later added the likes of Microsoft, Google, and Amazon to its Crosshairs. However, more stablecoins are in the works and could soon hit the market. 

Emerging Stablecoins: Spotlight on RLUSD

Ripple’s RLUSD is a stablecoin that is also known as Ripple USD. It was issued on the XRP Ledger and Ethereum blockchains to preserve a steady value relative to the US dollar. Its availability is currently subject to regulatory approval, which may take time.

When and if launched, RLUSD will compete with Tether’s USDT, USD Coin’s USDC, Binance USD’s BUSD, DAI, and TUSD. Stablecoins has a collective market cap of $176,978,692,686 at press time. It has risen by 0.06%. Needless to say, all of them are pegged to the US Dollar in 1:1.

Research Insights: XRP’s Potential Surge Amid Tether’s Uncertainty

Ripple has an alternative offering in the form of XRP. The crypto token performs decently in the digital currency market despite not being a stablecoin. The verdict against the SEC has only reinforced Ripple’s confidence and the market’s belief that the next high is imminent. XRP is exchanging hands at $0.5991, up by 0.05% in the last 24 hours. It is poised to reach $0.716727 in the next 5 days and $0.724281 in the next 30 days.

A core factor influencing XRP’s price has already entered the market—the lawsuit. Next, all eyes are on macroeconomic factors such as recession, inflation, rate cuts, and the outcome of the upcoming US presidential elections.

Advantages of RLUSD Over Tether

There are numerous benefits of RLUSD over Tether, but one of the most significant is that the value is intrinsically connected to the fiat currency. This makes understanding the price movement easier for every investor and/or trader. Others are:

• Transparency and reserve backing are crucial due to their easy-to-understand value. They also help facilitate instant cross-border settlements.
• Innovative features and use cases that are relevant to the on/off scaling of crypto assets and the facilitation of access to global liquidity and new markets with a stablecoin that meets regulatory requirements.
• The adoption potential within the crypto ecosystem is higher as there is a specific pattern to analyze. Values remain the same against the US Dollar.

Another potential advantage of RLUSD is its seamless offering to new crypto investors and traders.

Ripple’s Advancement for RLUSD

Ripple has made significant technological advancements for stablecoins. It has explored deep liquidity and ventured into multi-chain issuance. Programmable finance enhances efficiency and accessibility when making a purchase or trading.

Ripple Swell is one of the crypto events that has the potential to strengthen Ripple’s position in the stables market. It is Ripple’s annual flagship event that fuels discussions, networking opportunities, and groundbreaking insights. The event will take place in Miami, Florida, on October 15-16, 2024. Some of the featured speakers are Brad Garlinghouse, the CEO of Ripple; Sheila Bair, the former Chair of FDIC; and Philip Martin, the Chief Security Officer of Coinbase.

Ripple anticipates leveraging the opportunity to increase the value of RLUSD in the market. To accomplish this, Ripple will disclose project updates.

The Future of RLUSD

There is an optimistic outlook on the future of RLUSD. In fact, every stablecoin has the potential to shine in the future. This is due to their direct linkage to fiat currencies,  which exhibit no fluctuations on the price chart. Tether’s USDT has become a crucial entry point for many crypto enthusiasts. It is time for RLUSD to prove its rightful place in the market, or rather, to contribute to the architecture that has been established thus far in the cryptocurrency market.

The challenges will include garnering confidence in an era when malicious actors target many crypto businesses, and there is concern that networks are being exploited for money laundering. Furthermore, current trends are neutral, if not bearish, discouraging active participation with tokens.

Conclusion

Ripple’s RLUSD could take center stage during Ripple Swell. RLUSD will be pegged to the US Dollar in 1:1. It has its own set of challenges and risks to navigate. It will certainly challenge the USDT’s dominance with Tether.