Ripple Labs has begun beta testing for Ripple usd (RLUSD), a stablecoin pegged to the US dollar, on both the XRP Ledger and Ethereum mainnets. The stablecoin is not currently available for public trading as it awaits regulatory approval.
Ripple’s USD-Backed Stablecoin Enters Beta
Ripple usd or RLUSD, is designed to maintain a 1:1 value with the US dollar, backed by US dollar deposits, short-term US government treasuries and other cash equivalents.
Ripple Labs announced on Friday that these reserves will undergo monthly audits by a third-party accounting firm. The company stressed the importance of caution, warning users against potential scams that could exploit the Ripple brand to falsely offer RLUSD before its official release.
RLUSD aims to increase liquidity and facilitate institutional use cases on the XRP Ledger and Ethereum. During the pilot phase, RLUSD is available via XRP contract addresses and Ethereum contract addresses. Ripple Labs plans to integrate RLUSD into cross-border payment solutions alongside XRP, with future expansions to additional blockchains and decentralized finance protocols.
Ripple revealed that the testing phase will ensure the stablecoin meets security and performance standards before a wider rollout. “This is an important milestone and a step closer to bringing more high-quality assets to the XRP Ledger, driving new opportunities, liquidity, and institutional use cases for users, developers, and applications,” Ripple said.
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