Ripple Commences Test of RLUSD On Ethereum, XRP Ledger
Ripple announced that it has begun beta testing Ripple USD (RLUSD) on the XRP Ledger (XRPL) and the Ethereum mainnet, with plans to expand to other blockchains over time.
"This phase is crucial for ensuring that the stablecoin meets the highest standards of security, efficiency, and reliability before it becomes widely available, and after receipt of regulatory approval," said Ripple in a blog post.
Once RLUSD is live, Ripple will use both XRP, its native token, and RLUSD in its cross-border payments solutions. The fintech firm also cautions users to be weary of anyone claiming to have RLUSD or granting users early access to RLUSD.
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
Announced in April, RLUSD is 100% backed by USD deposits, short-term US government treasuries, and other cash equivalents.
Ripple promises its stablecoin will be enterprise-grade and compliance-first. RLUSD will join the growing list of USD-backed stablecoins with the stablecoin market expected to grow to over $2.8 trillion by 2028.
The testnet announcement of RLUSD came after Ripple was fined $125 million in a lawsuit by the United States Securities and Exchange Commission (SEC). Initially, the regulator sought $1 billion in disgorgement and prejudgment interest and $900 million in civil penalty.
With no more legal action pending over Ripple's head, it remains to be seen if RLUSD can gain dominance in the stablecoin market, competing against the likes of USDT and USDC.