Date: Sat, August 10, 2024, 04:53 AM GMT
Following its recent legal victory against the SEC, Ripple has announced the start of testing for its new stablecoin, RLUSD. The company is putting RLUSD through its paces on both the Ethereum and XRP networks.
In an August 9 blog post, Ripple shared that RLUSD is currently in its beta phase. “This phase is crucial for ensuring that the stablecoin meets the highest standards of security, efficiency, and reliability before it becomes widely available,” the company stated. Ripple emphasized the importance of obtaining regulatory approval before launching RLUSD to the public.
RLUSD is pegged 1:1 to the US dollar, backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. Ripple plans to have a third-party accounting firm audit these reserves and will publish monthly reports to maintain transparency.
David Schwartz, Ripple’s CTO, mentioned that RLUSD will offer unique benefits compared to other stablecoins like USDT. He noted that U.S.-based entities might prefer a U.S.-regulated stablecoin like RLUSD over Tether due to regulatory considerations.
However, Ripple clarified that RLUSD won’t be available for public trading until it receives full regulatory approval. This cautious approach comes after Ripple’s recent legal win, where the company was fined $125 million for violating U.S. securities laws—a much smaller penalty than the $2 billion originally sought by the SEC.
Ripple’s stablecoin could mark a significant step forward for the company, but for now, all eyes are on its regulatory journey.