Ripple Initiates Testing of RLUSD Stablecoin

Ripple has announced the commencement of a closed beta test for the RLUSD stablecoin on the XRP Ledger and Ethereum mainnet.

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

According to the press release, RLUSD has not yet received regulatory approval and is therefore unavailable for purchase or trading. The team urged caution against potential scammers allegedly distributing the stablecoin.

“There is a clear demand for stablecoins that provide trust, stability, and utility. […] With over a decade of experience in creating enterprise financial solutions, Ripple is ideally positioned to launch a stablecoin,” the publication states.

RLUSD is backed by dollar deposits, short-term US Treasury bonds, and other cash equivalents. An independent accounting firm will audit the reserves, and Ripple has promised to publish monthly reports.

“Once RLUSD becomes available, Ripple will use both RLUSD and XRP in cross-border payments to serve its global clients and significantly enhance their experience,” the company noted.

In 2023, Bernstein specialists predicted the stablecoin market would grow to $2.8 trillion over the next five years. Ripple referenced the analysts’ report in its press release to justify the initiative’s feasibility.

According to CoinGecko, USDT remains the undisputed leader among stablecoins. With a total segment capitalization of $166 billion, Tether holds nearly a 70% share with $115 billion.

The closest competitor, USDC, has a total market value of $34.4 billion, representing only a 21% share.

Earlier in 2024, Tether reported a record net profit of $5.2 billion for the first half of the year. In June, the issuer introduced the aUSDT token backed by Tether Gold (XAUT) within the Alloy “pegged assets” line.

In July, the US Securities and Exchange Commission concluded its investigation into the BUSD stablecoin from the cryptocurrency exchange Binance and its issuer Paxos.