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Ripple Launches Testing Phase for Ripple USD Stablecoin
Ripple has officially launched the testing phase for its highly anticipated Ripple USD stablecoin. Discover how this innovative digital currency aims to enhance the efficiency of cross-border transactions and reshape the financial landscape.
Ripple Advances into the Stablecoin Market with Testing Phase for Ripple USD
On Friday, Ripple, the leading enterprise-focused blockchain service and the innovator behind the XRP Ledger (XRP), announced that it has officially commenced testing its stablecoin, Ripple USD (RLUSD), on both the Ethereum (ETH) mainnet and the XRP Ledger. This significant step marks Ripple’s entry into the burgeoning stablecoin market, which is currently valued at approximately $160 billion.
According to a detailed blog post from the company, “Ripple USD is currently in its beta phase and is being rigorously tested by our enterprise partners.” This testing phase is deemed essential for ensuring that the stablecoin adheres to the highest standards of security, efficiency, and reliability prior to its public release and subsequent receipt of regulatory approval.
The announcement comes on the heels of Ripple’s strategic plans unveiled in April to dive into the rapidly expanding stablecoin sector. With the stablecoin market projected to grow to an astonishing $2.8 trillion by 2028, as forecasted by broker Bernstein, Ripple aims to position itself as a key player in this evolving landscape.
Ripple USD (RLUSD) will be underpinned by an array of assets, including short-term U.S. Treasuries, dollar deposits, and cash equivalents. To ensure transparency and trust, the reserves backing Ripple USD will undergo regular audits conducted by an independent third-party accounting firm. Furthermore, Ripple has committed to providing monthly attestations regarding the state of these reserves, as stated in their blog.
Once fully operational, Ripple plans to offer both Ripple USD and XRP as part of its global payment services to a diverse range of clients. However, it is important to note that the stablecoin is not yet available for trading, pending the necessary regulatory approvals. Ripple’s commitment to compliance underscores its dedication to building a trusted and secure financial ecosystem.