- Monica Long emphasizes RLUSD’s 1:1 US dollar peg, ensuring stability and trust for cross-border payments on XRP Ledger and Ethereum.
- Ripple’s RLUSD is in private beta on XRP Ledger and Ethereum, pending regulatory approval and rigorous security testing.
- RLUSD, backed by US dollar reserves, aims to drive liquidity and institutional use cases on the XRP Ledger and beyond.
Ripple Labs has unveiled its new stablecoin, Ripple USD (RLUSD), aiming to revolutionize cross-border payments and boost the utility of the XRP Ledger. Monica Long, President of Ripple, emphasized that RLUSD is designed to maintain a stable value of one US dollar, with its value backed by a segregated reserve of cash and equivalents.
This stablecoin is being introduced on both the XRP Ledger and Ethereum blockchains, with plans to expand to additional blockchains in the future. Ripple has stressed the importance of this development as it targets broader liquidity and accessibility for users globally.
Beta Testing and Regulatory Status
Ripple recently announced that RLUSD is now in private beta on both the XRP Ledger and Ethereum mainnet. The beta phase is critical for testing RLUSD’s security, efficiency, and reliability. Ripple’s decision to issue RLUSD on multiple blockchains highlights its commitment to ensuring extensive liquidity and accessibility for users.
However, RLUSD is not yet available for purchase or trading, pending regulatory approval. Ripple has also cautioned the public about potential scams involving early access to RLUSD, emphasizing that the stablecoin is still under rigorous testing.
Transparency and Trust in RLUSD
RLUSD is fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents, ensuring a 1:1 peg with the US dollar. Ripple has committed to transparency by engaging a third-party accounting firm to audit the reserve assets.
Monthly attestations will also be published to maintain public trust. The stablecoin’s introduction is a significant step toward bringing more high-quality assets to the XRP Ledger. By doing so, Ripple aims to drive new opportunities and liquidity for institutional use cases.
Impact on Cross-Border Payments
Ripple’s launch of RLUSD is set to enhance its cross-border payments solution. Once RLUSD is approved and available, Ripple plans to integrate the stablecoin with XRP in its global payments platform.
This integration is expected to improve user experience by offering a stable and reliable digital currency option. Ripple’s focus on creating a stablecoin backed by transparent reserves aligns with its broader strategy of delivering trust, stability, and utility in digital finance.
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