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Aiming for the stablecoin market! Ripple RLUSD has been tested on Ethereum and XRP Ledger

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Aiming for the stablecoin market! Ripple RLUSD has been tested on Ethereum and XRP Ledger

Testing, testing…RLUSD! We’re excited to share that Ripple USD RLUSD is now in private beta on XRP Ledger and Ethereum mainnet. RLUSD has not yet received regulatory approval and therefore is not available for purchase or trading – please be cautious of scammers who claim they…

— Ripple @Ripple August 9, 2024

Cryptocurrency payment provider Ripple Labs recently tweeted that they have begun testing their newly launched over-collateralized stablecoin Ripple USD RLUSD on the XRP Ledger XRPL and Ethereum mainnet, with plans for it to be used alongside XRP as a cross-border payment solution in the future.

RLUSD Stablecoin Tested on Ethereum and XRP Ledger

Ripple's announcement states that its stablecoin RLUSD has undergone internal testing on Ethereum and the XRP Ledger (XRPL), with plans to expand to other blockchains and DeFi protocols over time:

This marks a significant milestone bringing new opportunities, liquidity, institutional use cases, and more superior assets to the XRPL, users, developers, and applications.

It also adds, "XRPL will join forces with XRP to become a cross-border payment solution, significantly improving user experience."

The company indicates that RLUSD is an over-collateralized 1:1 USD-pegged stablecoin backed by reserves such as USD deposits, short-term U.S. treasuries, and other cash equivalents, and commits to monthly publication of reserve asset reports audited by a third-party accounting firm.

Ripple also reminds that RLUSD has not yet been approved by regulatory authorities, is not yet launched, and cannot be traded, cautioning users against scams claiming to offer early purchase rights for RLUSD.

Previously, Ripple CEO Brad Garlinghouse revealed the launch of RLUSD and XRPL EVM sidechains at the XRPL Community Summit in June this year.

Intense Competition in the Stablecoin Market

Ripple emphasizes confidence in rising to a prominent position in the stablecoin market as demand grows for tokens with low volatility and fiat pegs:

With years of experience in building enterprise financial solutions, Ripple aims to play a significant role in the stablecoin market surpassing $2.8 trillion by 2028.

Currently, the total market value of stablecoins is approximately $165.6 billion, with USDT and USDC holding 69.8% and 20.5% market share, respectively.

However, as countries in the Americas and Europe continue to enforce stricter crypto regulations, stablecoins are moving towards a more compliant path.

Swiss regulatory framework poses the biggest threat to stablecoins like USDT: Issuers must be licensed, even interest must be covered

SEC Lawsuit Against Ripple Concludes

On a side note, Ripple's multi-year lawsuit with the U.S. Securities and Exchange Commission (SEC) came to a close last week, with Ripple fined $125 million and subjected to an injunction as claimed by the SEC. The company views this ruling as a significant victory for the entire crypto industry.

Ripple Lawsuit Resolved! Fined $125 Million, Imposed Permanent Injunction, XRP Surges 20% on News