Ripple Starts Testing New Stablecoin RLUSD on Ethereum and XRP Ledger

YEREVAN (CoinChapter.com) — Ripple, a fintech company based in San Francisco, has started testing its new stablecoin, Ripple USD. The testing is taking place on Ripple’s native blockchain, the XRP Ledger, as well as on Ethereum. Ripple aims to address the global demand for stablecoins, which are digital tokens tied to stable assets like the U.S. dollar.

The company emphasized that RLUSD is still in its testing phase and has not yet received regulatory approval. Therefore, it is not available for purchase or trading. Ripple issued a warning on X, advising users to be cautious of scammers claiming to have or distribute RLUSD.

Ripple Seeks Regulatory Approval and Broader Blockchain Expansion for RLUSD

Ripple acknowledged that regulatory approval is necessary before Ripple USD can be fully launched. The company is working with regulators to ensure compliance with all required guidelines. Until then, any transactions involving RLUSD should be approached with caution.

Ripple also mentioned plans to expand RLUSD to additional blockchains and decentralized finance (DeFi) protocols in the future. This expansion is part of Ripple’s broader strategy to enhance cross-border payments.

RLUSD: Ripple’s Answer to Volatility in the Crypto Market

Stablecoins like RLUSD play a crucial role in the cryptocurrency market. They provide a way for users to hold assets on a blockchain without experiencing the price volatility common in other cryptocurrencies, such as Bitcoin. By pegging RLUSD to the U.S. dollar, Ripple intends to offer a stable digital currency for cross-border transactions.

Stablecoins have become a significant part of the crypto market. For example, Tether (USDT), the most-traded cryptocurrency, had a 24-hour trading volume of $30.9 billion, according to CoinGecko data.

Ripple Faces SEC Ruling, Presses Ahead with RLUSD Testing

The testing of RLUSD comes shortly after Ripple’s recent legal development with the U.S. Securities and Exchange Commission (SEC). In 2020, the SEC sued Ripple for allegedly selling unregistered securities in the form of XRP. A federal judge recently ruled that Ripple had violated securities laws but fined the company $125 million, far less than the $2 billion the SEC initially sought.

Ripple continues to move forward with its digital currency initiatives, including the ongoing testing of RLUSD. The company is progressing with its plans while awaiting the necessary regulatory approvals.