- Ripple Launches RLUSD Stablecoin Private Beta on XRP Ledger and Ethereum Mainnet, Signaling Major Cryptocurrency Market Developments.
- Amid Ongoing SEC Lawsuit, Ripple Advances with RLUSD Stablecoin Testing, Highlighting Commitment to Enhancing Cross-Border Payment Solutions.
Ripple recently initiated private beta testing of its new stablecoin, RLUSD, on both the XRP Ledger and the Ethereum mainnet. This development comes shortly after a notable legal judgment in the ongoing Ripple vs. SEC lawsuit, which has impacted Ripple’s market activities.
Ripple Commences Testing of RLUSD Stablecoin
The company announced the testing phase of its stablecoin, RLUSD, emphasizing that the coin is currently in a private beta on the XRP Ledger and Ethereum mainnet. Ripple has issued warnings to the public to be cautious of scams claiming to offer early access to the stablecoin, as it has not yet been approved by regulatory authorities.
Testing, testing…RLUSD! We’re excited to share that Ripple USD (RLUSD) is now in private beta on XRP Ledger and Ethereum mainnet. RLUSD has not yet received regulatory approval and therefore is not available for purchase or trading – please be cautious of scammers who claim they…
— Ripple (@Ripple) August 9, 2024
Characteristics of the RLUSD Stablecoin
RLUSD is pegged at a 1:1 ratio with the US dollar and is backed by a combination of US dollar deposits, short-term US government treasuries, and similar cash equivalents. Ripple plans to ensure transparency by conducting monthly audits through a third-party accounting firm to verify the sufficiency of its reserve assets.
Recent Legal Developments Affecting Ripple
Following a recent court ruling, Judge Torres found that Ripple violated securities laws in several transactions, resulting in a $125 million penalty. Despite these legal challenges, Ripple is proceeding with its project developments, including the RLUSD stablecoin.
Implications of RLUSD for the Cryptocurrency Market
The introduction of RLUSD aims to enhance Ripple’s capabilities in facilitating cross-border payments. Regulatory approval is pending, but once granted, RLUSD will be incorporated into Ripple’s payment solutions, potentially improving transaction efficiency.
The launch of the stablecoin is seen as a strategic move to position Ripple prominently within the stablecoin market, which is expected to expand significantly by 2028.
The testing of RLUSD aligns with a broader trend of financial institutions exploring the utility of stablecoins. As the market for stablecoins grows, Ripple is positioning itself to be at the forefront of this expansion, despite facing significant legal and market challenges.
