Ripple Begins Testing of Its RLUSD on XRP Ledger Following Legal Victory

Ripple initiates beta testing of its Ripple USD (RLUSD), a stablecoin pegged on the U.S. dollar. It will utilize both Ethereum mainnet and Ripple Ledger Network (XRPL). This significant milestone will bring more high-quality assets to XRPL, efficient liquidity, and multiple use cases for developers. However, RLUSD is not yet available for purchase in the market since it requires regulatory approval. 

The strategic news comes after XRP’s legal win against the U.S. Securities and Exchange Commission (SEC). Federal Judge Analisa Torres closed the chapter of Ripple and SEC battles, imposing a $125 million penalty on the firm instead of $2 billion (as sought by the SEC) for violating securities law.

Advertisement

Ripple Ensures Security of Stablecoin RLUSD During Its Beta Phase

On August 9, Ripple disclosed the news on its official X account (formerly Twitter), citing that Ripple USD is currently under rigorous testing from its enterprise partners to ensure the highest standards of security. Before acquiring legal approval, the Ripple team will ensure to build the most reliable and efficient stablecoin available in the market.

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

Ripple will now use both XRP and RLUSD to facilitate cross-border payments. Considering the high demand for stablecoins, Ripple will also work to improve its international payment experience.

The Ripple team affirmed that RLUSD will be valued at 1:1 with the US dollar and backed by US dollar deposits. Moreover, it will also rely on short-term US government treasuries and other cash equivalents to ensure a stable price. To ensure further safety, the company’s dollar reserves will be audited by third-party accounting firms, and Ripple will publish monthly attestation periodically.

Ripple Warns Users to Stay Cautious of Scam Tokens

Moreover, the team clarified that RLUSD is not yet available for trading on any platform, including DeFi or CeFi. The company warns the public to remain vigilant of scammers who claim to sell tokens in the early phase. They may also cause potential exploits for crypto users impersonating the official Ripple team.

To avoid such potential scams, the Ripple team provided the official smart contract addresses of both XRP and RLUSD on its website insights. Interacting with addresses other than those above may result in the loss of users’ funds.

While commenting on the latest achievement, Ripple noted in a statement:

Ripple is committed to transparency and will keep the community updated on the progress of Ripple USD. We appreciate your patience and enthusiasm as we work towards making RLUSD a robust and reliable stablecoin for everyone. Together, we are shaping the future of digital finance.

Ripple plans to expand RLUSD to multiple blockchains and DeFi platforms in the near future. As of now, it is only available on the Ethereum mainnet. With years of building financial payment solutions, Ripple is now in an ideal position to establish its own stablecoin, the team added. Moreover, Ripple’s market valuation is anticipated to grow by $2.8 trillion in the next 5 years with the launch of its stablecoin.

Currently, XRP hovers at $0.58, with a trading volume of $1.67 billion in the past 24 hours. According to data provided by CoinMarketCap, XRP ranks #7 with a market capitalization of $32 billion among the top cryptocurrencies.

Advertisement