Ripple has started testing the RLUSD stablecoin

Ripple has announced the launch of closed beta testing of the RLUSD stablecoin on the XRP Ledger network and the Ethereum mainnet.

Testing, testing…RLUSD! We’re excited to share that Ripple USD (RLUSD) is now in private beta on XRP Ledger and Ethereum mainnet. RLUSD has not yet received regulatory approval and therefore is not available for purchase or trading – please be cautious of scammers who claim they…

— Ripple (@Ripple) August 9, 2024

According to the press release, RLUSD has not yet received regulatory approval and is therefore unavailable for purchase or trading. The team urged to be vigilant because of possible scammers allegedly distributing stablecoin.

"There is a clear demand for stablecoins that provide trust, stability and utility. [...] With more than a decade of experience in creating corporate financial solutions, Ripple is in an ideal position to launch a stablecoin," the publication says.

RLUSD is backed by dollar deposits, short-term U.S. Treasury bonds and other cash equivalents. The reserves will be checked by a third-party accounting firm, Ripple has promised to publish monthly reports.

"As soon as RLUSD becomes available, Ripple will use both RLUSD and XRP in cross—border payments to serve its global customers and significantly improve their experience," the company noted.

In 2023, Bernstein experts predicted the growth of the stablecoin market to $2.8 trillion in the next five years. Ripple used a link to the analysts' report in its press release to justify the feasibility of the initiative.

According to CoinGecko, USDT remains the undisputed leader among stablecoins. With a total segment capitalization of $166 billion, Tether holds an almost 70% share with an indicator of $115 billion.

The nearest competitor, USDC, has a total market value of $34.4 billion. This is only a 21% share.

Recall that in the first half of 2024, Tether received a record net profit of $5.2 billion. In June, the issuer introduced the aUSDT token with collateral in the form of Tether Gold (XAUT) in the Alloy line of "linked assets".

In July, the U.S. Securities and Exchange Commission dropped its investigation into the BUSD stablecoin from the Binance crypto exchange and its issuer Paxos.