XRP Price Surges After Ripple's Stablecoin Launch: What’s Next?

XRP, the digital token used on the Ripple payment platform, saw a significant increase on Tuesday following the announcement of Ripple's new stablecoin, RLUSD. This development raises questions about XRP’s potential as a key player in the digital assets space. Here’s a look at XRP's price surge, the RLUSD launch, and what it means for Ripple and the broader crypto market.

XRP Price Gains 11.5% in 24 Hours

XRP jumped 11.5% over the last 24 hours as per Coinpedia Market data, reaching $2.64 as of Tuesday. This increase follows Ripple's announcement of RLUSD, a stablecoin backed by U.S. dollar deposits, U.S. government bonds, and cash equivalents. Ripple stated that RLUSD is designed to be stable, reliable, and liquid.


For a more detailed XRP Price Prediction 2025 and insights on XRP’s next moves, check out our full analysis.

Ripple's RLUSD Stablecoin: A New Market Player

Ripple launched RLUSD as a new stablecoin available on major global exchanges starting Tuesday. Initially, it will be listed on Uphold, Bitso, MoonPay, Archax, and CoinMENA, with further listings planned for Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash.

The launch of RLUSD strengthens Ripple’s position in the digital asset market, which could benefit XRP as demand for stablecoins rises.

Ripple also appointed Kenneth Montgomery, former first vice president and COO of the Federal Reserve Bank of Boston, to the RLUSD advisory board. His experience in regulatory and financial matters will help Ripple navigate the digital assets landscape.

RLUSD: Competing with Tether and PayPal

Antonio Di Giacomo, an analyst at XS.com, believes RLUSD places Ripple in direct competition with major stablecoin players like Tether (USDT) and PayPal. Stablecoins provide an alternative to the volatility of cryptocurrencies like Bitcoin and Ether by being pegged to stable assets such as the U.S. dollar.

While Tether is the largest stablecoin by market cap, it has faced challenges in maintaining its dollar peg. In 2021, Tether was fined $41 million by the Commodity Futures Trading Commission (CFTC) for misleading claims about its reserves. Tether has since stated that its tokens are now “backed 100% by Tether’s Reserves.”

Ripple’s RLUSD will need to prove its ability to maintain stability and stay pegged to the dollar.

XRP's Growth: A Rising Digital Asset

Since the November 2020 U.S. presidential election, XRP has surged over 500%, becoming the third-largest cryptocurrency by market cap, behind Bitcoin and Ether. As of Tuesday, XRP’s market cap stood at $137.3 billion.

XRP's growth has been fueled by expectations that the incoming Trump administration will be more crypto-friendly, boosting investor confidence in digital assets.

The Future of XRP and RLUSD

With the launch of RLUSD and its growing role in the crypto space, XRP’s future looks promising. However, only time will tell if Ripple can prove RLUSD’s stability and maintain its position in the competitive stablecoin market.

 

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