- Ripple has started testing its new stablecoin, Ripple USD (RLUSD), on XRP Ledger and Ethereum
- The company has entered the growing stablecoin market, with RLUSD backed by US dollars and equivalents
- This testing comes four months after Ripple announced its stablecoin plans
San Francisco-based fintech company Ripple recently announced the commencement of testing for its new stablecoin, Ripple USD (RLUSD), on its own blockchain, XRP Ledger, as well as on Ethereum. This move marks Ripple’s entry into the rapidly expanding stablecoin market, where the demand for reliable digital currencies has been growing exponentially, and comes four months after its stablecoin plans were revealed.
Not Yet Approved
Ripple disclosed the news on Friday, emphasizing that RLUSD is currently in the testing phase and has not yet received regulatory approval. As a result, it is not available for purchase or trading at this time. The company cautioned users to be wary of scammers who might falsely claim to offer RLUSD for sale, reiterating that the stablecoin is still under development and regulatory review:
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 also hinted at its future plans to expand the reach of RLUSD, mentioning the possibility of deploying the stablecoin on additional blockchains and decentralized finance (DeFi) protocols over time. This expansion aligns with Ripple’s broader strategy to integrate its digital currency solutions into the evolving crypto landscape, which increasingly aims to provide alternatives to traditional financial systems.
Another Stablecoin Enters the Fray
Ripple’s foray into the stablecoin market is significant, given the rapid growth of stablecoins in recent years. These digital assets, typically pegged to a stable asset like the US dollar, have seen substantial adoption due to their ability to provide a hedge against the volatility commonly associated with other cryptocurrencies.
Stablecoins have become essential tools in the crypto ecosystem, facilitating everything from cross-border payments to decentralized finance operations.
Ripple first announced its stablecoin initiative in April, stating that RLUSD would be fully backed by US dollars, short-term U.S. government treasuries, and other cash equivalents, similar to the backing purportedly afforded to market leader Tether. This backing is designed to ensure the stability and reliability of RLUSD, making it a trustworthy option for users looking to conduct transactions with minimal risk.
