Ripple Labs has initiated a beta test for its latest stablecoin, RLUSD, on Ethereum and the XRP Ledger.
Ripple Labs has initiated beta testing of Ripple USD (RLUSD) on the Ethereum mainnet and the XRP Ledger (XRPL). The RLUSD will be supported by 100% USD deposits, short-term US government treasuries, and other cash equivalents, and will be valued at 1:1 to the US currency. Ripple’s private beta launch occurred subsequent to its substantial legal victory over the Securities and Exchange Commission (SEC).
The new stablecoin is currently unavailable for purchase or trading as it has not yet received regulatory sanction. Ripple cautions market participants to exercise caution when dealing with individuals who assert that they possess or have the ability to distribute RLUSD, as the stablecoin is not currently available for purchase or trading.
This step by Ripple represents a significant milestone in the stablecoin sector, as it will enable the company to introduce a greater number of high-quality assets to the XRPL and institutional use cases for users. It emphasizes that Ethereum also offers the mainnet version of Ripple USD.
In accordance with the release, Ripple intends to implement both RLUSD and XRP in its cross-border payment solution. While Ripple USD is still in the beta phase, the organization intends to investigate alternative blockchains and decentralized finance (DeFi) protocols. According to Ripple, the present phase is essential for guaranteeing that the stablecoin adheres to the most stringent security protocols.
According to data, the cumulative stablecoin market capitalization is approximately $173 billion. Ripple anticipates that this sector will expand to more than $2.8 trillion by 2028. Tether’s USDT is the most significant stablecoin, with a market capitalization exceeding $115 billion. Its 24-hour trading volume was approximately $52.4 billion.
Circle’s USDC is the second-largest stablecoin in the market, with a market capitalization of $34.4 billion and a 24-hour trading volume of $5.9 billion. DAI is an additional significant participant in this sector, with a capitalization of $5.3 billion.
Since August 5, when the market reached its lowest point, Tether has generated USDT worth more than $1.3 billion. Major centralized exchanges, including Binance, Kraken, Coinbase, and OKX, received this substantial quantity of USDT. It implies that speculators purchased the decline when Bitcoin’s price fell below $50,000.
XRP, Ripple’s native cryptocurrency, experienced a surge of more than 20% as the lengthy legal dispute between the US Securities and Exchange Commission (SEC) and the blockchain company concludes. In the wake of the highly anticipated settlement, a US magistrate has determined that Ripple Labs is required to pay $125 million in penalties. Nevertheless, it is anticipated that the commission will file an appeal against the decision.
In the past 30 days, the price of XRP has increased by 35%, while Bitcoin has only experienced a 4% increase. At the time of publication, the average price of XRP is $0.5898. Its market capitalization was $33 billion, and its 24-hour trading volume was approximately $2 billion.
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