Ripple introduced that it has begun beta testing Ripple USD (RLUSD) on the XRP Ledger (XRPL) and the Ethereum mainnet, with plans to develop to different blockchains over time.
“This section is essential for making certain that the stablecoin meets the very best requirements of safety, effectivity, and reliability earlier than it turns into extensively out there, and after receipt of regulatory approval,” stated Ripple in a blog post.
As soon as RLUSD is stay, Ripple will use each XRP, its native token, and RLUSD in its cross-border payments solutions. The fintech agency additionally cautions customers to be weary of anybody claiming to have RLUSD or granting customers early entry to RLUSD.
Introduced in April, RLUSD is 100% backed by USD deposits, short-term US authorities treasuries, and different money equivalents.
Ripple guarantees its stablecoin might be enterprise-grade and compliance-first. RLUSD will be a part of the rising record of USD-backed stablecoins with the stablecoin market anticipated to develop to over $2.8 trillion by 2028.
The testnet announcement of RLUSD got here after Ripple was fined $125 million in a lawsuit by the US Securities and Change Fee (SEC). Initially, the regulator sought $1 billion in disgorgement and prejudgment curiosity and $900 million in civil penalty.
With no extra authorized motion pending over Ripple’s head, it stays to be seen if RLUSD can acquire dominance within the stablecoin market, competing towards the likes of USDT and USDC.