Ripple has initiated the private beta testing of its USD stablecoin, Ripple USD (RLUSD), on both the Ethereum mainnet and the XRP Ledger (XRPL). This development marks a significant step forward for the company as it aims to expand its digital asset offerings.
Stablecoin Testing Underway
The company disclosed this advancement in a recent post on X, directing users to an official press release. Interestingly, this announcement came just two days after Judge Analisa Torres made a final ruling in the Ripple v. SEC lawsuit, effectively concluding the legal battle, barring any appeals.
Ripple’s private beta testing of RLUSD on the XRPL moves them closer to enhancing the network with high-value digital assets, increased institutional use cases, and greater liquidity. This phase is crucial in identifying and correcting any flaws before public release. Currently, only Ripple’s enterprise partners are conducting these tests, ensuring that the Ripple USD project is reliable and secure.
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Ripple emphasized that RLUSD is not yet available for public trading or purchase. The company warned of potential malicious actors who might falsely claim authority to sell or distribute RLUSD tokens. Additionally, Ripple clarified that RLUSD has not received regulatory approval yet. The U.S. SEC previously labeled the token as an “unregistered asset.” As part of its transparency efforts, Ripple has provided the contract addresses of the stablecoin on both the XRP Ledger and the Ethereum mainnet.
What Lies Ahead
Following the private beta phase, Ripple plans to move into public beta testing, allowing the general public to rigorously test the project without risking real assets. Once these tests are complete, Ripple will seek regulatory approval for the stablecoin’s launch and use, which they expect to secure later this year.
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Upon gaining approval, Ripple intends to leverage both RLUSD and XRP for its cross-border payment services, positioning itself to capture a significant share of the growing stablecoin market. With Tether (USDT) leading the market and a projected market size of $2.8 trillion in the next four years, Ripple aims to establish RLUSD as a key player in the stablecoin industry.
The company claims that RLUSD will be backed by government treasuries, cash deposits, and similar equivalents.
