Ripple’s Stablecoin Enters Beta Phase On XRP Ledger And Ethereum

In a major milestone for Ripple, the company has started testing its game-changing stablecoin, Ripple USD (RLUSD).

San Francisco-based cross-border payments company Ripple announced on Friday that it had begun testing its USD-backed stablecoin on its native blockchain, XRP Ledger, and the second largest crypto network, Ethereum (ETH).

Earlier this year, Ripple announced that it would launch its own stablecoin as part of its foray into the $160 billion stablecoin market, which is currently dominated by Tether’s USDT and Circle’s USDC token.

Meanwhile, bears dragged the XRP price below the $0.60 mark.

Ripple’s Stablecoin Enters Beta Phase On XRP Ledger And Ethereum

In a major development, Ripple has begun testing its much-anticipated stablecoin, Ripple USD (RLUSD), a move that will see the company enter the fast-growing stablecoin market.

“We’re excited to share that Ripple USD (RLUSD) is now in private beta on XRP Ledger and Ethereum mainnet, being rigorously tested by our enterprise partners,” Ripple said in an Aug. 9 X blog post. “This phase is crucial for ensuring that the stablecoin meets the highest standards of security, efficiency, and reliability before it becomes widely available and after receipt of regulatory approval.”

This marks a significant milestone, a step closer to bringing more high-quality assets to the XRP Ledger, driving new opportunities for users, developers, and applications in the XRP ecosystem, and opening up more use cases for XRP in global payments.”

However, Ripple noted that RLUSD is not yet approved by regulators and is not available for purchase or trading. The fintech firm urged users to be vigilant against potential scams that may claim to offer early access to the stablecoin.

According to the announcement, RLUSD will cater to the surging global demand for stablecoins. The company will also offer its clients the stablecoin and XRP for their global payment services.

Rival Of USDT And USDC

The announcement on Friday comes after Ripple began its foray into the fast-growing stablecoin sector in April. The company then unveiled the name of its stablecoin project at the XRP Ledger Community Summit in June.

Set to launch later this year, Ripple’s stablecoin will be fully backed by U.S. dollars, short-term U.S. government treasuries, and cash equivalents. According to the announcement, Ripple will report monthly attestations of its reserves backing the stablecoin, which will be audited by a third-party accounting firm.

The current $160 billion stablecoin market serves as a critical component of the crypto infrastructure used for trading and payments on blockchains. The two largest stablecoins in the crypto market are Tether’s USDT and Circle’s USDC. According to Broker Bernstein, the stablecoin market could reach $2.8 trillion in the next five years.

The announcement on Friday by Ripple comes after the firm claimed victory against the Securities and Exchange Commission in their long-standing case.

At press time, XRP was trading at $0.5782 per coin, down 6.9% in the past 24 hours, according to CoinGecko.

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