Ripple Labs Kicks Off Beta Tests of Its USD-Pegged Stablecoin, RLUSD, on XRP Ledger and Ethereum Mainnets

The company plans to deploy this fiat-backed token on additional blockchain networks in the future.

Ripple Labs has initiated the first tests of its USD-pegged stablecoin, Ripple USD (RLUSD), on the XRP Ledger (XRPL) and Ethereum mainnets. The company intends to deploy this fiat-backed token on additional blockchain networks in the future.

Ripple Labs has emphasized that RLUSD will be overcollateralized, with each unit backed 1:1 by USD reserves or short-term cash equivalents in a bank. For transparency, the company has pledged third-party audits and monthly reports on the reserves. Ripple also confirmed its continued commitment to both XRP and RLUSD, dispelling rumors of a shift in focus away from XRP.

The stablecoin is currently in beta testing with enterprise partners, and Ripple has warned against any scams offering early access to RLUSD, which is not yet available for purchase or live trading.

This development follows a recent legal ruling in which Judge Analisa Torres imposed a $125 million penalty on Ripple Labs in the SEC’s lawsuit against the company. Ripple CEO Brad Garlinghouse hailed the penalty as a “victory,” especially considering the SEC's initial request for a $2 billion fine.

During a podcast appearance, Garlinghouse suggested that the U.S. government is targeting Tether, sparking concerns of an impending regulatory crackdown.

Tether CEO Paolo Ardoino criticized Garlinghouse for spreading “fear about USDT” and called his remarks hypocritical, particularly as Ripple itself is currently under investigation by the U.S. Securities and Exchange Commission (SEC). He highlighted that Ripple is also planning to launch its own stablecoin in 2024, which could directly compete with Tether’s USDT.

After the ruling, the price of XRP surged by 26%, reaching $0.64. Despite this positive trend, Ripple’s Q2 2024 XRP Markets Report indicated a 65.6% decrease in transaction volume on the XRP Ledger, accompanied by a significant increase in the average cost per transaction.

Earlier in June, Ripple acquired digital asset custodian Standard Custody, a move that will be crucial for its planned rollout of a USD-backed stablecoin and its broader aspirations in real-world asset tokenization.

Ripple’s aspirations extend beyond its current payment network, aiming for a broader role in the financial sector by enabling institutions to utilize blockchain for a range of services.

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