Janice R. Andrews
Leading blockchain company Ripple, which is well-known for its tight ties to the XRP Ledger, has revealed that it has begun testing Ripple USD (RLUSD), a new stablecoin, on both the Ethereum (ETH) mainnet and the XRP Ledger. In a blog post on Friday, the business announced the development and emphasized that RLUSD is still in its beta stage and going through rigorous testing with its enterprise partners.
Before RLUSD is made generally accessible, Ripple claims that this testing stage is essential to guaranteeing that it satisfies the greatest criteria of security, effectiveness, and dependability. However, because regulatory permission is still pending, the stablecoin is not yet tradeable.
With the introduction of RLUSD, Ripple enters the quickly expanding stablecoin sector, which is presently estimated to be worth $160 billion. Stablecoins play a crucial role in the cryptocurrency market by acting as a link between different blockchains for trade and payments. Although Tether’s USDT and Circle’s USDC now control the majority of the market, analysts anticipate substantial growth in the years to come. According to an estimate by renowned trading company Bernstein, the stablecoin industry may reach a valuation of $2.8 trillion by 2028.
With short-term U.S. Treasuries, dollar deposits, and cash equivalents as its backing, Ripple USD is intended to be a safe and reliable investment. A third-party accounting firm will audit the reserves backing RLUSD, and Ripple intends to offer attestations on a regular basis to uphold openness and confidence.
After gaining regulatory permission, Ripple plans to provide its customers with XRP and RLUSD for international payment services. This move demonstrates Ripple’s dedication to growing its product line and securing its place in the dynamic blockchain and cryptocurrency market.
