Ripple, the blockchain company closely associated with the XRP Ledger, has taken a significant step into the stablecoin arena by initiating tests of its new Ripple USD (RLUSD) on both the Ethereum mainnet and XRP Ledger. This move marks Ripple’s entry into the rapidly expanding stablecoin market, which is currently valued at $160 billion and projected to reach $2.8 trillion by 2028, according to broker Bernstein. The company announced that RLUSD is currently in its beta phase, undergoing rigorous testing with enterprise partners to ensure it meets high standards of security, efficiency, and reliability before wider release.
The introduction of RLUSD represents a strategic expansion for Ripple, positioning the company to compete in a market dominated by established players like Tether’s USDT and Circle’s USDC. Ripple has emphasized transparency in its approach, stating that RLUSD will be backed by short-term U.S. Treasuries, dollar deposits, and cash equivalents. To maintain trust and compliance, the reserves will be subject to third-party audits, with Ripple committing to monthly attestations.
While RLUSD is not yet tradeable pending regulatory approval, Ripple has outlined plans to utilize both RLUSD and XRP for its cross-border payment services. This dual-token strategy could potentially enhance Ripple’s offerings in the global payments sector, leveraging the stability of RLUSD alongside the established XRP token. As the stablecoin market continues to grow and evolve, Ripple’s entry with RLUSD could introduce new dynamics to the ecosystem, particularly in enterprise-focused blockchain services and international transactions.
