Ripple Tests New Stablecoin RLUSD

Ripple advances its digital asset ambitions by launching RLUSD tests on major blockchains, awaiting regulatory green light.

Ripple has initiated the testing phase for its new stablecoin, Ripple USD (RLUSD), on both its native XRP Ledger and the Ethereum blockchain. The fintech firm aims to meet the rising global demand for stablecoins, especially for cross-border payments. Despite this progress, Ripple has cautioned that RLUSD is not yet available for trading or purchase due to the pending regulatory approval. This move underscores Ripple’s continued innovation in the crypto space, even as it navigates significant legal and regulatory challenges.

The company has ambitious plans to extend RLUSD's functionality to additional blockchains and decentralized finance (DeFi) protocols in the future. Ripple’s stablecoin is fully backed by U.S. dollars, short-term U.S. government treasuries, and other cash equivalents, aligning with its strategy to make financial transactions faster, cheaper, and more secure.

Ripple’s recent legal battle with the SEC, where the company was fined $125 million for selling unregistered securities, has not deterred its push toward expanding its suite of financial products. This legal development, however, contrasts with the SEC's original demand for a $2 billion penalty, highlighting Ripple’s resilience in the face of regulatory scrutiny.

As the testing of RLUSD continues, Ripple remains focused on its broader goal of revolutionizing the financial industry through blockchain technology and digital assets, positioning itself as a leader in the next generation of cross-border payment solutions.

photo source / Blockonome