Ripple USD (RLUSD) Stablecoin Now in Private Beta on XRP Ledger and Ethereum Mainnet

Ripple has officially started beta-testing its stablecoin, the Ripple USD (RLUSD), four months after the California blockchain payments company first announced

Blockchain payments company Ripple has officially begun beta-testing its stablecoin, the Ripple USD (RLUSD), four months after first announcing the new product.

The company announced the move this week, revealing that the beta will be on the XRP Ledger (XRPL) and Ethereum. The beta is currently private, with the company working only with its enterprise partners to stress-test the stablecoin, since it has not yet received the regulatory authority required to service the public. In due time, the company pledged to expand to other blockchains, including DeFi protocols.

“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…,” announced Ripple on August 9, 2024.

“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,” the company stated in its blog post.

Ripple first announced the stablecoin in early April, describing it as the company’s attempt at providing a stablecoin that delivers “trust, stability and utility”, which it claimed is still in demand by crypto market players.

The RLUSD will be competing with established stablecoins in the $150 billion market, with the market leader being Tether (USDT), whose market cap hit $115 billion this week. USDT accounts for over 70% of the market, a ratio that has remained constant for over a year. Since September last year, its market cap has gone up 40%. USDC is the second-largest player with a $34.5 billion market cap.

Can Ripple Compete With USDT and USDC?

For any company, stablecoins present a lucrative market opportunity. In essence, these companies receive fiat currencies in exchange for their tokens, and can invest this money on anything they wish, without having to split the profits with the people whose hard currency is on the line.

As Ripple CTO David Schwartz best captured it in an interview earlier this year: “It’s a growing market. You could be a bank that pays no interest. That seems like a good business opportunity.”

The market opportunity is clear, but the challenge for Ripple will be attracting users. At the moment, only six stablecoins have managed to achieve the $1 billion market cap landmark—USDT, USDC, Edelcoin, DAI, Ethena USDe and First Digital USD. In fact, only nine more have hit over $100 million, out of hundreds of stablecoins issuers. This shows that while the top players are minting billions, most issuers never achieve mainstream success.

According to Schwartz, Ripple will be relying on its connections and network to break through the tough stablecoin market.

If Ripple does manage to establish itself as a serious stablecoin issuer, some analysts are claiming that the ultimate winner will be XRP, which could hit $12.

XRP is currently trading at $0.5986, up 4.3% in the past day.

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