After SEC lawsuit, Ripple will test stablecoin launch
RLUSD was privately tested on XRP Ledger and Ethereum by Ripple.
RLUSD cannot be bought or traded until it has regulatory permission.
XRP fell almost 6% after the news.
In anticipation of regulatory clearance, Ripple began beta testing its RLUSD stablecoin on Friday. XRP has fallen nearly 6% in 24 hours but may bounce following the announcement.
XRP falls when Ripple launches USD stablecoin.
On Friday, Ripple announced on its X account that it is testing its US Dollar-backed Ripple USD (RLUSD) stablecoin on the XRP Ledger and Ethereum Mainnet. The fintech business aims to distribute the stablecoin after regulatory permission.
It promises that RLUSD will be completely supported by the US Dollar and matched to its price 1:1. Short-term US Treasuries and cash equivalents will support the asset. Ripple said a third-party accounting company would examine reserve assets and send regular updates.
Ripple unveiled its stablecoin plans in April. According to the business, the stablecoin would aid users by adding high-quality assets to the XRP Ledger.
Two years ago, the Securities & Exchange Commission (SEC) and the company had a four-year regulatory fight that began in December 2020. The SEC requested a $2 billion punishment, but a judge ordered a $125 million civil penalty cost on Wednesday.
In the last 24 hours, XRP fell 0.9% to $0.59. XRP proponents believe the stablecoin move and SEC regulatory clearance will boost the cryptocurrency.
On daily charts, XRP may fall to cover the liquidity gap around $0.5. XRP may rally if it hits a trendline linking April 13, June 7, July 13, and August 7.
