TLDR
- Ripple has begun beta testing its new stablecoin, Ripple USD (RLUSD), on XRP Ledger and Ethereum
- RLUSD is designed to be pegged 1:1 to the US dollar and backed by US dollar deposits and treasuries
- The stablecoin is not yet available for purchase or trading
- Ripple plans to use RLUSD alongside XRP in its cross-border payments solution
- Ripple has also introduced tokenized US Treasury bills on the XRP Ledger through a partnership with OpenEden
Ripple, the company behind the XRP cryptocurrency, has started beta testing its new stablecoin called Ripple USD (RLUSD).
This testing is happening on both the XRP Ledger (XRPL) and the Ethereum network. Ripple announced this news on August 9, 2024.
RLUSD is a type of cryptocurrency that aims to keep its value steady by being tied to the US dollar. Ripple says that for every RLUSD, there will be one US dollar or something worth one dollar backing it up.
This backing will include US dollar bank deposits, short-term US government treasury bills, and other similar assets.
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…
— Ripple (@Ripple) August 9, 2024
Right now, RLUSD is in a testing phase. Ripple is working with its business partners to make sure the stablecoin is safe and works well before more people can use it. The company has made it clear that RLUSD is not ready for people to buy or trade yet.
Ripple has warned people to be careful about scams. Some tricks might try to fool people into thinking they can get RLUSD early. The company stressed that this isn’t true and that the stablecoin isn’t available for the public yet.
Once RLUSD is ready and gets the okay from regulators, Ripple plans to use it in its system for sending money across borders.
This system already uses XRP, and Ripple thinks adding RLUSD will make things work even better for its customers around the world.
Ripple sees a big future for stablecoins like RLUSD. They believe the whole stablecoin market could grow to be worth $2.8 trillion by 2028. By creating RLUSD, Ripple is trying to get a piece of this growing market.
To help people trust RLUSD, Ripple says it will have an outside accounting company check the money and assets backing the stablecoin. They promise to share reports about this every month.
In a separate but related move, Ripple has also brought something new to the XRP Ledger: tokenized US Treasury bills. They’re working with a company called OpenEden to do this. This means that a digital version of these government IOUs can now be used on Ripple’s system.
Ripple thinks that by adding these Treasury bill tokens and creating RLUSD, more big companies and banks might start using systems like the XRP Ledger. They see it as a way to connect traditional finance with newer, digital ways of handling money.
As of August 11, 2024, RLUSD is still in testing. Ripple hasn’t said exactly when it will be ready for everyone to use. The company says it will keep people updated on how things are going with RLUSD as they continue to work on it.
