Ripple Delays RLUSD as XRP Loses Momentum in Market

• RLUSD launch delayed due to regulatory concerns
• XRP loses position as third largest cryptocurrency
• Stablecoin aims to boost Ripple’s liquidity platform

Ripple has confirmed that it has postponed the launch of its RLUSD stablecoin, which was initially scheduled for December 2024. The decision was officially announced on December 5th through a blog post on X, where the company stated: “$RLUSD will not be launched today.” The postponement reflects Ripple’s commitment to ensuring regulatory compliance while awaiting approval from the New York Department of Financial Services (NYDFS).

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.

We are fully committed to launching under the supervision of NYDFS and upholding the highest regulatory standards. Stay tuned…

- Ripple (@Ripple) December 4, 2024

The announcement comes amid a significant drop in the price of Ripple’s native token, XRP. XRP’s value plummeted from $2,59 to $2,31 in just 24 hours, resulting in a 12% loss in market cap, which now stands at $131,42 billion. This pullback has seen XRP lose its recent position as the third-largest cryptocurrency, being surpassed by Tether (USDT), which has a market cap of $135,8 billion.

Furthermore, XRP futures trading volume dropped sharply from over $32 billion to under $16 billion on Dec. 4, indicating a significant reduction in market activity. Data from Glassnode suggests that the RLUSD postponement may have intensified selling sentiment among investors, contributing to the token’s decline.

RLUSD Stablecoin Strategy and Impact
Ripple announced RLUSD in April 2024 as an enterprise-grade stablecoin with a focus on regulatory compliance. Backed by deposits in U.S. dollars, U.S. Treasuries, and cash equivalents, RLUSD aims to strengthen Ripple’s On-Demand Liquidity (ODL) platform. This solution is essential for fast and efficient cross-border payments and could boost the value of XRP in the long term.

To ensure global adoption, Ripple has entered into strategic partnerships with exchanges such as Uphold, Bitstamp, MoonPay, Independent Reserve, CoinMENA, and Bullish. Market leaders such as B2C2 and Keyrock will be responsible for supporting the stablecoin’s liquidity.

Ripple emphasized that the launch will take place under the supervision of the NYDFS, aiming to meet the highest regulatory standards. The company also highlighted the potential of the stablecoin market, which is expected to grow to $2,8 trillion by 2028.

At the time of publication, the price of XRP was quoted at $2,36 with a drop of 2% in the last 24 hours.

While the RLUSD delay and XRP crash pose immediate challenges, Ripple remains optimistic about the positive impact of its stablecoin on the cryptocurrency ecosystem, especially its cross-border payments services.