Ripple (XRP) Initiates Testing Phase for Its New Stablecoin, Ripple USD (RLUSD), on XRP Ledger and Ethereum

This is a significant development for the cross-border payments company, which had announced its intention to launch a stablecoin sometime this year.

Announced earlier this year, Ripple's stablecoin, Ripple USD (RLUSD), is now undergoing testing on the XRP Ledger and Ethereum mainnet, according to an announcement on August 9.

The cross-border payments company has not yet received the necessary regulatory approval for RLUSD, which is pegged to the US dollar at a 1:1 ratio. As a result, the stablecoin is not yet available for purchase or trading.

The company also warned users about possible scams that may claim to have or distribute the new asset.

“We’re excited to share that Ripple USD (RLUSD) is now in private beta on XRP Ledger and Ethereum mainnet,” Ripple stated.

“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 get you RLUSD.”

The RLUSD stablecoin is designed to complement the XRP token, which backs the XRP Ledger network. This integration aims to enhance the XRP ecosystem's functionality and introduce a new option in a market dominated by stablecoins like USDT and USDC.

Ripple aims to compete with these leading stablecoins, which account for a significant portion of the total stablecoin supply. As of August 9, the total stablecoin supply stands at $172.29 billion, with USDT and USDC holding $121.62 billion and $36.38 billion, respectively.

The XRP token, on the other hand, lost 6.4% of its value in the last 24 hours, trading at $0.58 at the time of writing. However, the cryptocurrency is recovering from a sharp drop a few days ago, which saw its value briefly fall below $0.44.

Stablecoins, such as RLUSD, are designed to facilitate more stable and predictable transactions within an ecosystem by being pegged to the value of fiat currencies or other assets. In this case, RLUSD will be pegged to the US dollar at a 1:1 ratio.

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