Ripple Begins Testing RLUSD Stablecoin
09 Aug, 2024 ● Coin news
On Aug. 9, Ripple Labs announced the initial testing of its United States dollar-pegged stablecoin, Ripple USD (RLUSD), on both the XRP Ledger (XRPL) and Ethereum mainnets, with plans to extend the stablecoin to other blockchain networks in the future.
According to Ripple Labs, the upcoming stablecoin will be overcollateralized, meaning each unit of RLUSD will be backed by USD reserves or short-term cash equivalents held in a bank at a 1:1 ratio with the US dollar.
To ensure transparency and accountability, Ripple has committed to third-party audits of the underlying cash assets and will publish monthly reports on the reserves.
The company also reaffirmed its dedication to using both XRP and RLUSD to serve markets, dismissing rumors that it would abandon XRP in favor of its new stablecoin.
In the announcement, Ripple Labs emphasized that the stablecoin is currently in beta testing with enterprise partners and warned users to be cautious of scammers claiming to sell or provide early access to RLUSD, which is not yet available for purchase or live trading.
The mainnet tests of RLUSD came shortly after an Aug. 7 ruling by Judge Analisa Torres, who imposed a $125-million penalty on Ripple Labs in the Securities and Exchange Commission’s lawsuit, initially filed in 2020.
Ripple CEO Brad Garlinghouse described the penalty as a “victory” against the SEC, which had sought a much larger $2-billion fine against Ripple Labs for alleged securities violations.
Following the news, the price of XRP surged by 26%, reaching a high of $0.64 on the day of the ruling.
Despite these positive developments, the XRP Ledger (XRPL) saw a 65.6% decrease in transaction volume during the second quarter of 2024, as reported in Ripple Labs’ Q2 2024 XRP Markets Report.
The report indicated a significant drop in transactions, from 251,397,881 in the first quarter to 88,388,029 in the second quarter, alongside a noticeable increase in the average cost per transaction on the ledger.
Sources:
https://cointelegraph.com/news/ripple-begins-testing-rlusd-stablecoin-mainnet
