**Ripple Labs Tests New Stablecoin Amid Legal Battles**
Ripple Labs has begun testing its new dollar-pegged stablecoin, RLUSD, on the XRP Ledger and Ethereum mainnets. The stablecoin is overcollateralized, backed 1:1 by US dollar reserves or cash equivalents, with third-party audits and monthly reserve reports promised for transparency.
Despite rumors, Ripple confirmed it would continue using both XRP and RLUSD. The stablecoin is in beta testing with enterprise partners, and Ripple cautioned against scammers offering early access.
This comes after Ripple was hit with a $125 million penalty in an SEC lawsuit. CEO Brad Garlinghouse called it a “victory” against the SEC, which had sought a $2 billion fine. XRP's price surged 26% following the ruling.
However, Ripple’s Q2 2024 report showed a 65.6% drop in XRPL transaction volume, from 251 million in Q1 to 88 million in Q2, with a rise in transaction costs.