Ripple Begins Beta Testing Stablecoin RLUSD on XRP Ledger and Ethereum Mainnet

Author

Hongji Feng

Author

Hongji Feng

About Author

Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

Author Profile

Share

Copied

Last updated:

August 9, 2024 19:35 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ripple began beta testing Ripple USD (RLUSD) on the XRP Ledger and Ethereum mainnet on August 9.

According to an official announcement published by Ripple, the beta phase will involve active testing by enterprise partners to ensure the stablecoin meets standards of security and reliability before wider availability and regulatory requirements.

Ripple Introduces Stablecoin RLUSD

The company plans to expand the stablecoin to additional blockchains and decentralized finance (DeFi) protocols in the future. RLUSD is currently not for trading or purchase.

“There is a clear demand for stablecoins that deliver trust, stability, and utility,” the statement reads. “Once RLUSD is available, Ripple will use both RLUSD and XRP in its cross-border payments solution to serve its global customers and dramatically improve their experience.”

The announcement indicated that the company is targeting the stablecoin market with expectations to reach $2.8 trillion by 2028. The coin itself will be completely backed by U.S. dollar deposits, short-term U.S. government treasuries, and other cash equivalents.

In addition, the reserve assets will undergo audits by an independent accounting firm, with Ripple committing to release monthly attestations.

“Ripple is committed to transparency and will keep the community updated on the progress of Ripple USD,” said the company. “We appreciate your patience and enthusiasm as we work towards making RLUSD a robust and reliable stablecoin for everyone.”

XRP Ledger Brings Tokenized US Treasury Bills

Recently, Ripple expanded the utility of its XRP Ledger (XRPL) by introducing tokenized U.S. Treasury bills (T-bills) onto the platform. This development is part of the partnership with OpenEden, a prominent provider of tokenized real-world assets (RWA).

The collaboration seeks to bring short-term U.S. government debt obligations, backed by the Department of Treasury, to XRPL users, potentially setting the stage for increased institutional adoption of DeFi solutions.

“The tokenization of T-bills onto the XRPL is a demonstration of how institutional access to DeFi is being driven by the tokenization of traditional RWAs,” the release read.