Ripple Launches Beta Testing for RLUSD Stablecoin on XRP Ledger and Ethereum
Ripple has initiated beta testing for its fresh stablecoin, Ripple USD (RLUSD), on the XRP Ledger and the Ethereum mainnet.
The San Francisco-based payment company states that Ripple USD is presently not available for purchase and awaits regulatory approval.
The firm assures that the stablecoin will be fully supported by cash and cash equivalents and will be redeemable on a 1:1 basis for US dollars. Additionally, Ripple aims to broaden the availability of RLUSD to other blockchains and decentralized finance (DeFi) protocols in the future.
Ripple had initially introduced plans for the new stablecoin in April. In a legal filing in May, the U.S. Securities and Exchange Commission (SEC) contended that the planned stablecoin constituted an “unregistered crypto asset.”
The SEC’s securities lawsuit against Ripple began when the regulator sued the company in late 2020 for allegedly selling XRP as an unregistered security.
Last year, US District Judge Analisa Torres ruled in favor of Ripple in part when she determined that the company’s automated, open-market sales of XRP did not qualify as security offerings. However, she did support the SEC’s claim regarding Ripple’s direct sales of XRP to institutional buyers.
In a recent order, District Judge Torres imposed a $125 million civil penalty against the San Francisco-based payment company for those institutional sales.
Stay tuned for more updates and developments in the cryptocurrency space.
