The cryptocurrency market is changing rapidly, especially in Europe. There, the Markets in Crypto-Assets (MiCA) regulation is directly affecting stablecoin compliance.
In reaction to this, Crypto.com has taken Tether (USDT) off of its platform, presumably to help the company stay compliant with upcoming regulations.
🚨BREAKING: @cryptocom Removes $USDT to Comply with MiCA Regulations!
Ripple’s stablecoin $RLUSD will conquer the stablecoin market and #XRP is an auto-bridge currency for every $RLUSD transaction. pic.twitter.com/OofaBoOhGt
— JackTheRippler ©️ (@RippleXrpie) January 30, 2025
This action underscores the growing examination stablecoins are under and paves the way for compliant substitutes to expand their share of the stablecoin market. One of these potential substitutes is Ripple’s RLUSD, a stablecoin that could take a huge chunk out of the digital asset space, given its regulatory approval, clear transparency practices, and integration with XRP.
Ripple’s RLUSD: A New Contender in the Stablecoin Market
RLUSD is a stablecoin created by Ripple that is fully compliant and meets the highest regulatory standards. The company has committed to releasing regular transparency reports that detail the reserves backing RLUSD and the operations underpinning it. These reports are audits in and of themselves because the working group the company has established to oversee these matters—including regulatory compliance—has the job of ensuring that everything related to RLUSD is above board and clearly understood. There’s a reason Ripple has taken this unusual approach: It is all part of a “push for regulatory clarity and oversight” that the company, the industry at large, and a number of cryptocurrency skeptics hope will result in fewer coin issuers being able to operate in the regulatory shadows.
RLUSD’s integration with XRP gives it a unique edge over other stablecoins and lending protocols. XRP is Ripple’s native token, and it is used as an auto-bridge currency in every RLUSD transaction. This means that whenever RLUSD is used in cross-border payments, XRP facilitates liquidity in the payment and ensures that the payment is efficient.
—YEAR 2 DAY 195—
Ripple will release transparency reports on a regular schedule of the RLUSD stablecoin which has been independently audited for accuracy.
This will be a required procedure for a US approved digital dollar. RLUSD will be legal tender for all services // XRP https://t.co/uUtJDhSCEJ pic.twitter.com/vgUdIV2ZTh
— Chad Steingraber (@ChadSteingraber) January 30, 2025
Another aspect of RLUSD’s potential is its legal status. Ripple has positioned RLUSD to be a fully compliant digital dollar, meaning it could be used as legal tender for various financial services. This move aligns with ongoing conversations in the U.S. about issuing a regulated, government-approved digital currency. If RLUSD is successful, it could set a precedent for future stablecoin frameworks and lead to much wider adoption of blockchain-based, financial solutions.
XRP DEX Volume Surges Amid Market Rally
Although RLUSD is gaining traction, XRP is also seeing a big rise in trading activity, especially on decentralized exchanges. In January 2025, Ripple CEO Brad Garlinghouse shared with the world an outstanding XRP story. On that day, Ripple’s DEX trading volume was up to $400 million. However, it, too, was not stopping there. Data that day also indicated that XRP’s DEX volume had recently skyrocketed to $1 billion, a 500% rise in the storytelling department.
XRP’s DEX trading volume hit $400M in January 2025, per Ripple CEO Brad Garlinghouse.
Is this a sign of growing adoption or just market hype?
— Coin Bureau (@coinbureau) January 30, 2025
This soaring trading volume points to an increasing adoption of XRP in DeFi by investors. More and more, investors seem to favor DEXs over CEXs. CEXs are not going away, but DEXs offer a range of benefits that are causing users to flock to them in recent months and years: (1) transparency; (2) security; (3) control; (4) asset accessibility; (5) efficiency and transaction speed; (6) trading flexibility; (7) the ability to earn yield; and (8) the promise of having fun while trading.
XRP’s trading volume has grown massively, and it’s now a key liquidity provider in the growing digital asset space. With its auto-bridge capabilities for RLUSD transactions, XRP’s true value and utility within the Ripple ecosystem are becoming more apparent. As more institutions issue RLUSD, the demand for such dollars—and the demand for XRP’s bridging capabilities—could drive XRP’s value much higher.
🗞️ Today’s Crypto Moves!
🔹 XRP DEX volume hits $1B amid 500% rally
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🔹 EU concerns grow as USD stablecoins hit 97% dominanceCatch all the details 👇https://t.co/RJeC8j2o82 pic.twitter.com/KVEm4m55mj
— CoinMarketCap (@CoinMarketCap) January 29, 2025
A Defining Moment for Stablecoins and XRP
The changing regulatory environment in the crypto industry is underscored by the delisting of USDT by Crypto.com. With governments and financial regulators moving toward ever-stricter guidelines, the only stablecoins that seem likely to survive are those that comply with transparency and other established standards. Ripple’s RLUSD is one such stablecoin, a well-audited, legally compliant alternative that is deeply integrated into the XRP ecosystem.
XRP’s DEX trading volume has increased by 500% and is distinctly headed in one direction: up. Combined with Ripple’s continued expansion into an ever-growing FinTech sphere, that makes XRP increasingly relevant. It is possible to dig even deeper, though, and find untapped—so far—potential in XRP.
The imminent combination of RLUSD’s regulatory approval and XRP’s increasing adoption could reshape the stablecoin market. If RLUSD gains widespread acceptance as legal tender, and if XRP continues along its path of facilitating seamless cross-border transactions, then Ripple’s entire ecosystem could be a tour de force in the next chapter of digital finance.
Eyes will be on how the next phase of growth for both XRP and RLUSD is shaped by development in regulations, market dynamics, and adoption by institutions as the industry evolves.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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Source: https://nulltx.com/crypto-com-delists-usdt-to-comply-with-mica-as-ripples-rlusd-gains-traction/