XRP News: Ripple RLUSD Gains Utility Boost As Collateral Asset

Ripple has been cooking behind the scenes and its latest efforts cast the spotlight on its RLUSD stablecoin. The crypto company’s managing director revealed interesting XRP news and other details regarding the stablecoin.

Just over 4 months have passed since Ripple launched its RLUSD stablecoin. It has achieved significant growth so far but it just went through one of its most significant developments yet.

Ripple’s managing director revealed during one of the company’s latest conferences that RLUSD will be used as collateral in Hidden road. The latter is a credit network that offers services to institutions at a global scale.

Ripple acquired Hidden Road for $1.25 billion, which marked one of its biggest acquisitions in history. According to the Ripple executive, using RLUSD as collateral for Hidden Road will act as a bridge between traditional finance and the digital asset industry.

The decision will effectively expose RLUSD to Hidden Road’s institutional clientele and offer a compelling utility aspect now that the stablecoin is a collateral asset.

Here’s how the Hidden Road acquisition plays a role in Ripple strategy

The statement by Ripple’s executive reveals more details about the company’s strategy. Particularly in regards to the Hidden Road acquisition. The global credit network has over 300 institutional clients whose trades annually exceed $3 trillion.

The acquisition not only allowed Ripple to gain access to those clients, but also to use RLUSD as part of the infrastructure supporting service delivery. She also noted that Hidden Road’s post brokerage services will run on the XRP ledger.

This further highlights the use of Ripple’s network to support institutional grade services. Ripple’s focus on institutional clients may also aid in rapidly building up its credibility.

Ripple’s strategy has not only been to focus on underserved business to business services, but also to solve some of the inefficiencies between traditional finance and WEB3.

RLUSD stablecoin recap

Ripple’s RLUSD has been rapidly gaining traction and thus it joins the list of fastest growing stablecoins. It has been around for a tad over 4 months and has already achieved significant growth.

For context, its marketcap stood at $293.94 million at the time of observation. Although it is a Ripple product, most of the RLUSD stablecoins in circulation (67.89% equivalent to $199.64 million) were on the Ethereum blockchain.

The remaining 32.11% which amounted to $94.41 million existed on the Ripple blockchain. The fact that RLUSD was still only limited to two chains might be holding it back. In other words, the stablecoin could potentially become more popular if it expands to other top chains like Solana and Tron.

The growing RLUSD utility especially courtesy of the Hidden Road development could potentially lead to higher volumes. This may already be happening considering that the stablecoin saw a massive volume spike by 130.87% in the last 24 hours, to $14.84 million.

RLUSD’s volume figures have been punching at a small fraction of other major stablecoins like Tether’s USDT. This was for obvious reasons including the fact that it is still one of the newest stablecoins and it has a significantly lower supply.

In addition, rival stablecoins had the advantage of a strong head start hence boosting its adoption. RLUSD still has a long way to go but with Ripple building towards more use cases could set the stablecoin up for more aggressive growth in the future.

Meanwhile, the developments around Ripple and its RLUSD stablecoin may have boosted XRP investor confidence. XRP volume surged by 48.84% in the last 24 hours. Meanwhile, price pulled off a 1.70% upside during the same 24-hour period.

Despite this slight excitement, XRP price volatility recently dipped to extreme lows. However, that outcome was a reflection of the overall market sentiment over the last 7 days.