Ripple began testing its new stablecoin on Thursday, the Ripple USD (RLUSD), on the XRP Ledger and Ethereum mainnets. RLUSD is presently in its beta stage, accessible only to Ripple’s enterprise customers. That means the token is not for public use and is not yet trading on exchanges or usable on DeFi protocols.
In a blog last Thursday, Ripple announced, “Ripple USD is currently in its beta phase and is being rigorously tested by our enterprise partners. This phase is crucial for ensuring that the stablecoin meets the highest standards of security, efficiency, and reliability before it becomes widely available, and after receipt of regulatory approval. Consequently, Ripple USD is not available for purchase or trading at this time.”
The firm believes that the stablecoin market cap will grow to over $2.8 trillion by 2028 and wants to spearhead the niche, backed by its vast arching blockchain and enterprise-related solutions. To maintain integrity with RLUSD issuance and management, Ripple will implement monthly third-party audits of the reserves backing the stablecoin and publish the reports publicly.
Ripple’s RLUSD will clearly be pegged to the US Dollar’s value, exhibiting a 1:1 value, meaning each token will be worth about a dollar. The firm will maintain that peg by backing the stablecoin 100% with “US dollar deposits, short-term US government treasuries, and other cash equivalents.”
Furthermore, Ripple cautioned users of possible scams arising as the RLUSD’s testing has begun. It mentioned in an X post, “RLUSD has not yet received regulatory approval and therefore is not available for purchase or trading – please be cautious of scammers who claim they have or can distribute Ripple USD.”
As Ripple looks to shake up the stablecoin market, the beta launch of its new token was not the only massive news arising from its camp last week. A court order asked it to pay $125 million to the Securities and Exchange Commission (SEC), an amount 94% lesser than the $2 billion the agency demanded, ending the years-long suit brought against the company. Ripple CEO Brad Garlinghouse celebrated the decision, “This is a victory for Ripple, the industry and the rule of law. The SEC’s headwinds against the whole of the XRP community are gone.”
