Ripple Enters Beta Testing Phase for New Stablecoin RLUSD
Ripple, a prominent cross-border payment firm, has kicked off beta testing for its latest stablecoin, Ripple USD (RLUSD), on both the XRP Ledger (XRPL) and Ethereum mainnet. This major development signifies Ripple’s commitment to expanding its presence in the crypto market and improving its cross-border payment solutions.
What is RLUSD?
- RLUSD is a stablecoin pegged 1:1 to the US dollar, designed to provide stability in value.
- It will be backed by US dollar deposits, short-term US government treasuries, and other cash equivalents to ensure transparency and trust.
Private Beta Testing and Regulatory Approval
Currently, RLUSD is in a private beta phase, being tested with Ripple’s enterprise partners. It’s crucial to note that the stablecoin is not yet available for purchase or trading as it awaits regulatory approval. To avoid falling victim to scammers, exercise caution against false claims of early access to RLUSD.
Integration with Cross-Border Payments Solution
- Ripple plans to integrate RLUSD into its cross-border payments solution alongside XRP once regulatory approval is secured.
- This move aims to enhance the global payment experience for customers, tapping into a market projected to grow to over $2.8 trillion by 2028.
Ripple’s Legal Victory and XRP’s Response
In a recent legal development, Ripple faced a $125 million penalty in an SEC lawsuit, which CEO Brad Garlinghouse deemed a victory compared to the initial $2 billion fine requested by the SEC. This ruling brought some clarity to Ripple’s regulatory status and the XRP ecosystem, with XRP not being classified as a security under US law.
Positive Market Response
- Following the court ruling, the price of XRP surged by 26% to reach a high of $0.64.
- Despite this positive momentum, the XRP Ledger saw a 65.6% drop in transaction volume in the second quarter of 2024, as per Ripple’s Q2 2024 XRP Markets Report.
Hot Take: Ripple’s Future with RLUSD
Ripple’s foray into the stablecoin market with RLUSD sets the stage for a new chapter in the company’s journey. With a focus on expansion, innovation, and regulatory compliance, Ripple is poised to make a significant impact in the crypto space with its stablecoin offering.
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