Ripple has announced the initial testing of its stablecoin, RLUSD, on the XRPL and Ethereum mainnets.
XRP advocate Bill Morgan highlights Ripple’s efforts to obtain regulatory approval for RLUSD.
Morgan’s statement gains attention as many stablecoins are currently in the market without approval.
Bill Morgan, a prominent XRP advocate, has recently drawn attention to Ripple’s efforts to obtain regulatory approval for its stablecoin RLUSD, while many well-known stablecoins exist without the approval.
Ripple states that: “RLUSD has not yet received regulatory approval”But Ripple is seeking regulatory approval.This is a bid deal. I can think of certain well known stablecoins that do not enjoy any regulatory approval. https://t.co/7SqHcXbeXk
— bill morgan (@Belisarius2020) August 11, 2024
The crucial statement came following RLUSD’s initial testing on the XRPL and Ethereum mainnets last day. While announcing the significant milestone in the Ripple ecosystem, the team revealed that the stablecoin hasn’t yet received regulatory approval and hence it is not available for purchase or trading. This statement caught the attention of the XRP enthusiasts, as highlighted by Morgan.
In June 2024, Ripple announced the potential launch of its strategic stablecoin Ripple USD (RLUSD), which CEO Brad Garginhouse called the “Real USD.” The community was too much overwhelmed by the announcement as the team shed light on the potential of the stablecoin market to reach $2.8 trillion to $3 trillion by 2028 from the current $150 million.
Subsequently, the ecosystem saw multiple developments, including the creation of the webpage and RLUSD’s first test. In the first week of August, Ripple developed an exclusive webpage for RLUSD despite unrevealing the stablecoin’s launch date. On August 9, 2024, Ripple announced that RLUSD was in its first testing phase on the XRPL and Ethereum magnets.
Morgan focused on Ripple’s decision not to provide the stablecoin to the customers until regulatory approval was obtained, highlighting that several stablecoins currently exist in the market without regulatory approval. Though regulatory approval wasn’t mandated for stablecoins previously, with the implementation of the EU’s Markets in Cryptoassets (MiCA) regulation, stablecoin issuers are required to gain approval from relevant authorities. However, as highlighted by Morgan, there are many stablecoins still pending to get approval.
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