On August 9, Ripple Labs announced the initial tests of its United States dollar-pegged stablecoin, Ripple USD (RLUSD), on the XRP Ledger (XRPL) and Ethereum mainnets. The company also revealed plans to deploy the fiat-backed token on additional blockchain networks in the future.
Ripple Labs stated that RLUSD will be overcollateralized, meaning each unit of RLUSD will be backed by USD reserves or short-term cash equivalents at a 1:1 ratio with the US dollar. To ensure transparency and accountability, Ripple has promised third-party audits of the underlying cash assets and will publish monthly reports on the reserves.
The firm also reaffirmed its commitment to both XRP and RLUSD, dispelling rumors that it would shift focus from XRP to its new stablecoin.
Ripple Labs emphasized that the stablecoin is currently in beta testing with enterprise partners and cautioned users to be wary of scammers claiming to offer early access to RLUSD, which is not yet available for purchase or live trading.
This announcement follows an August 7 ruling by Judge Analisa Torres, which imposed a $125-million penalty on Ripple Labs in the Securities and Exchange Commission’s (SEC) lawsuit, originally filed in 2020. Ripple CEO Brad Garlinghouse described the penalty as a “victory” against the SEC, which had sought a $2-billion fine for alleged securities violations.
Following the ruling, XRP saw a surge in its price, climbing 26% to reach $0.64 on the same day.
Despite these positive developments, Ripple Labs’ Q2 2024 XRP Markets Report highlighted a 65.6% drop in transaction volume on the XRPL, falling from 251 million transactions in the first quarter to 88 million in the second quarter. The report also noted a significant increase in the average cost per transaction on the ledger.
