Ripple Begins RLUSD Testing on Ethereum and XRP Ledger
Ripple has initiated beta testing for Ripple USD (RLUSD) on the XRP Ledger (XRPL) and the Ethereum mainnet, with intentions to extend to other blockchains in the future.
“This phase is critical to ensuring that the stablecoin meets the highest standards of security, efficiency, and reliability before it is widely accessible, and subsequent to receiving regulatory approval,” stated Ripple in a blog post.
After the launch of RLUSD, Ripple plans to utilize both XRP, its native token, and RLUSD in its cross-border payment solutions. The company advises caution to users regarding individuals claiming to possess RLUSD or offering early access to RLUSD.
RLUSD, introduced in April, is fully backed by USD deposits, short-term US government treasuries, and other cash equivalents. Ripple commits to delivering an enterprise-grade and compliance-first stablecoin. RLUSD will join the expanding array of USD-backed stablecoins, with the stablecoin market projected to exceed $2.8 trillion by 2028.
The unveiling of RLUSD on the testnet followed Ripple being fined $125 million in a lawsuit by the United States Securities and Exchange Commission (SEC). Initially, the SEC had sought $1 billion in disgorgement and prejudgment interest, along with a $900 million civil penalty.
With legal issues resolved, the focus shifts to whether RLUSD can establish a strong presence in the stablecoin market, contending with established players like USDT and USDC.
