XRP News Today: Ripple’s RLUSD Stablecoin Launch Sparks XRP Rally; BTC Hits $107K

Ripple Stablecoin RLUSD to Go Live

On Monday, December 16, Ripple announced Tuesday’s launch of RL USD, stating,

“The wait is over: RLUSD launches globally tomorrow!”

Ripple described RLUSD as an ‘enterprise-grade stablecoin built on trust, utility, and compliance.’

Backed by US dollar deposits, US government bonds, and other cash equivalents, RLUSD will undergo third-party audits to ensure transparency. Ripple aims to build stronger ties between fiat and crypto while enhancing cross-border payments.

Ripple President Monica Long highlighted the significance of the launch, stating,

“The release of RLUSD marks a new chapter – both for the XRP Ledger, as well as Ripple for use in our $70B+ payments flows. Combining our 10+ yrs in the business; the rigor & compliance required with stablecoin issuance by a NYDFS chartered company; and an experienced Advisory Board – RLUSD is launching from Day 1 with credibility, utility and a whole host of partners ready to support it!”

RLUSD will be initially available on Archax, Bitso, CoinMENA, MoonPay, and Uphold at launch, according to Ripple’s press release. Ripple also expects Bitstamp, Bullish, Independent Reserve, Mercado Bitcoin, and Zero Hash to list RLUSD.

RLUSD’s launch could be pivotal in Ripple’s bid to challenge SWIFT and traditional banks’ dominance in remittance services, offering instant settlement of cross-border payments.

Will the SEC Target Ripple’s Stablecoin?

Tuesday’s launch follows a period of uncertainty surrounding the SEC’s stance on the stablecoin. In April 2024, the SEC filed its remedies-related reply brief in the Ripple case, labeling RLUSD an issuance of a new unregistered crypto asset. The agency has remained silent ahead of Tuesday’s launch, leaving its future regulatory response unclear.

In the August 2024 Final Judgment, Judge Analisa Torres stated that Ripple must comply with US securities laws but did not issue an injunction prohibiting XRP sales to institutional investors. If the SEC pursues its Ripple appeal, Chair Gensler might address RLUSD in its appeal-related opening brief, due by January 15, 2025.

With Gensler stepping down on January 20, 2025, regulatory uncertainty surrounding Ripple remains high. However, investors remain optimistic, expecting incoming SEC Chair Paul Atkins to end the SEC’s era of regulation through enforcement.

XRP Price Volatility and Regulatory Impact

On Monday, December 16, XRP advanced by 1.62%, following Sunday’s 1.93% gain to close at $2.4842. XRP outperformed the broader market, which rose by 0.61%, taking the total market cap to $3.640 trillion. News of Ripple launching RLUSD boosted XRP demand.

Near-term price trends will remain hinged on the SEC’s appeal decision. XRP could rally to the January 2018 all-time high of $3.5505 if the SEC ends its appeal. Conversely, XRP could fall toward $1 if the agency pursues the appeal.

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Bitcoin Hits New Record High Amid MicroStrategy Move

On Monday, December 16, bitcoin (BTC) rallied to a new high of $107,471. MicroStrategy (MSTR) founder and Chairman Michael Saylor announced its latest purchase:

“MicroStrategy has acquired 15,350 BTC for ~ $1.5 billion at ~ $100,386 per bitcoin and has achieved BTC Yield of 46.4% QTD and 72.4% YTD. As of 12/15/2024, we hodl 439,000 BTC acquired for ~$27.1 billion at ~$61,725 per bitcoin.”

The acquisition coincided with news of MicroStrategy’s inclusion in the Nasdaq 100. BTC demand remained robust on Monday as investors considered Trump’s plans for a Strategic Bitcoin Reserve (SBR).

IG Market Analyst Tony Sycamore commented on BTC striking a new record high, saying,

“The fresh record high came after US President-elect Donald Trump confirmed he intends to establish a US Bitcoin strategic reserve. While a meaningful pullback in Bitcoin has yet to materialize after its post-US election rally, we note the increasing signs of bearish divergence on the RSI. Not a reason to fade the move but it does provide encouragement that a pullback to buy may not be far away.”

US BTC-Spot ETF Market Extends Inflow Streak

On Monday, the US BTC-spot ETF market is on target to extend its net inflow streak to 13 sessions, the longest since February. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $116.1 million.
• ARK 21Shares Bitcoin ETF (ARKB) reported net inflows of $47.7 million.
• Bitwise Bitcoin ETF (BITB) had net inflows of $30.7 million.

Excluding iShares Bitcoin Trust (IBIT) and Invesco Galaxy Bitcoin ETF (BTCO), total net inflows reached $218.7 million.

MicroStrategy’s purchase and sustained BTC-spot ETF continued tilting the supply-demand balance in BTC’s favor, driving BTC to new highs.

Bitcoin Price Outlook

On Monday, December 16, BTC rose by 1.51%, following Sunday’s 2.88% gain to close at $105,750, a new record close.

Near-term BTC price trends remain hinged on SBR developments, US BTC-spot ETF market flow trends, and US government BTC sales. A significant BTC sale by the US government could refuel oversupply fears, potentially pulling prices below $100,000.

Market Outlook for XRP and BTC

Both XRP and Bitcoin are at critical junctures. XRP’s price direction depends on the SEC appeal and regulatory developments, while Bitcoin’s trajectory relies on the Strategic Bitcoin Reserve, ETF inflows, and macroeconomic conditions.

Market participants should stay updated with expert analysis to navigate the evolving crypto landscape.

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