Ripple recently started testing its new stablecoin, the Ripple USD (RLUSD), on the XRP Ledger and Ethereum mainnets. This stablecoin is currently in the beta phase and can only be accessed by Ripple’s enterprise customers. It is not yet available for public use, trading on exchanges, or for use on DeFi protocols.
According to a recent blog post by Ripple, the RLUSD stablecoin is undergoing rigorous testing by enterprise partners to ensure it meets high standards of security, efficiency, and reliability before being widely available. Regulatory approval is also needed before the stablecoin can be used. As a result, Ripple USD cannot be purchased or traded at the moment.
Ripple has ambitious goals for the stablecoin market, predicting a market cap of over $2.8 trillion by 2028. The company aims to lead the way in this niche market with its strong blockchain technology and enterprise solutions. To maintain transparency and integrity, Ripple plans to conduct monthly third-party audits of the reserves backing the stablecoin and make the reports public.
The value of RLUSD will be pegged to the US Dollar, with a 1:1 ratio, meaning each token will be valued at approximately one dollar. To support this peg, Ripple will back the stablecoin 100% with US dollar deposits, short-term US government treasuries, and other cash equivalents.
Ripple has also issued a warning about potential scams related to RLUSD, as the testing phase has begun. The company emphasized that RLUSD has not yet received regulatory approval, so users should be cautious of scammers claiming to have or distribute Ripple USD.
In addition to the beta launch of RLUSD, Ripple made headlines last week when it was ordered to pay $125 million to the Securities and Exchange Commission (SEC). This amount is significantly lower than the $2 billion initially demanded by the SEC, bringing an end to a long legal battle. Ripple CEO Brad Garlinghouse expressed his satisfaction with the decision, calling it a victory for Ripple, the industry, and the rule of law. The SEC’s actions against Ripple and the XRP community have now been resolved.