Ripple Initiates Trials of Its Stablecoin on Ethereum and XRP Ledger
Ripple, a blockchain service company known for the XRP Ledger (XRP), announced on Friday that it has initiated trials for its new stablecoin on both the Ethereum (ETH) mainnet and XRP Ledger. The stablecoin, RLUSD, is currently in a testing phase and is not yet available for trading as it awaits regulatory approval.
According to a blog post by Ripple, the company emphasized the importance of this beta phase in ensuring that the stablecoin meets stringent standards of security, efficiency, and reliability before it is launched to the public. The stablecoin is backed by short-term U.S. Treasuries, dollar deposits, and cash equivalents, with plans for regular audits by a third-party accounting firm and monthly reporting attestations.
In April, Ripple unveiled its intentions to enter the expanding stablecoin market with its own U.S. dollar-pegged token. Stablecoins play a pivotal role in the crypto economy, facilitating trading and payments on blockchains. Currently, the stablecoin market is valued at $160 billion and is predominantly dominated by Tether’s USDT and Circle’s USDC. Analysts at Bernstein project that the stablecoin market could soar to $2.8 trillion by 2028.
Ripple envisions offering both RLUSD and XRP for global payment services to its clientele. However, RLUSD is not yet tradable due to pending regulatory clearance, as outlined by Ripple. The company is committed to providing updates on the progress of RLUSD and its regulatory status.
In other news related to Ripple and XRP, the digital asset XRP experienced a 14% surge in value this week as several institutions adopted Ripple’s services. This positive momentum for XRP comes amidst the conclusion of the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).
The developments surrounding Ripple’s new stablecoin and the ongoing growth of XRP demonstrate the company’s strategic positioning within the evolving cryptocurrency landscape. As Ripple continues to innovate and expand its offerings, the crypto community eagerly anticipates the future impact of these initiatives.
For more insights and updates on Ripple and XRP, readers can refer to the provided links for further information. This article has been edited by Aoyon Ashraf.
