- Ripple has begun testing its new stablecoin, Ripple USD (RLUSD), on the Ethereum mainnet and XRP Ledger.
- RLUSD is currently in beta phase and being tested by Ripple’s enterprise partners, but is not yet tradeable as it awaits regulatory approval.
- Ripple plans to offer both RLUSD and XRP for cross-border payments services to clients.
Ripple has started testing its new stablecoin, Ripple USD (RLUSD), on the Ethereum and XRP Ledger networks. The company says this beta testing phase is important for ensuring the stablecoin meets high standards before full launch.
RLUSD Details
The stablecoin is pegged to the U.S. dollar and backed by short-term Treasuries and cash equivalents. Third-party audits and monthly attestations will help ensure full reserves. Ripple plans to use RLUSD and XRP together for cross-border payments services once the coin is approved by regulators.
Stablecoin Market Growth
Ripple is entering a booming stablecoin market currently valued around $160 billion. Tether‘s USDT and Circle’s USDC dominate for now. But with forecasts of up to $2.8 trillion growth by 2028, there is room for new major players like Ripple.
Testing Phase
Ripple says enterprise partners are rigorously testing RLUSD in the beta phase. Meeting security, efficiency and reliability standards at this stage will prepare it for full launch after regulatory approval.
XRP and Ripple-SEC Case
The beta test news comes after Ripple’s win in its legal battle with the SEC. XRP prices surged on the favorable outcome for Ripple in this high-profile crypto case.
Disclosure and DisclaimersConclusion
As a major blockchain company with many institutional clients, Ripple has a strong chance of gaining significant stablecoin market share. But thorough beta testing work remains to ensure a smooth full launch.
