Ripple, the company behind the XRP token, has announced the launch of the testing phase of its Ripple USD (RLUSD) stablecoin. This new stablecoin, designed to compete with USDT and USDC, is now being integrated into mainnet.
Ripple advances its stablecoin RLUSD
Competing with the giants Tether and Circle, which offer the two most capitalized stablecoins on the market: this is the objective that Brad Garlinghouse, CEO of Ripple, had set when he first introduced the future stablecoin of the company issuing the XRP token last April.
A few months later, Ripple announces that the stablecoin, dubbed Ripple USD (RLUSD), is starting its testing phase on the Ethereum blockchain and on its own blockchain, the XRP LedgerAccording to the American company's press release, RLUSD will be gradually made compatible with new networks and integrated into certain decentralized finance (DeFi) protocols.
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Let's clarify that although it was launched on mainnetRLUSD is currently not accessible to investors. Only individuals and companies participating in the test phase initiated by Ripple can currently use the firm's stablecoin.
And for good reason, the RLUSD stablecoin is awaiting regulatory approval, according to Ripple's press release:
Ripple USD is currently in beta and is being rigorously tested by our corporate partners. This phase is crucial to ensure that the stablecoin meets the highest standards of security, efficiency, and reliability before being widely available and after receiving regulatory approval.
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Why a new stablecoin?
Ripple, whose primary goal is to enable interbank transactions via its XRP token, wants to add a string to its bow here with the same objective, but with a stable asset..
The firm, with a decade of experience in this market segment, ensures that it is well positioned to stand out in an environment that is already well established and, above all, dominated by far by Tether's USDT and Circle's USDC.
Ripple USD will be, as its name suggests, a stablecoin backed by the dollar. It will be backed by a reserve of dollar deposits, short-term US Treasury bonds and other cash equivalents..
Just a few days ago, Ripple was fined $125 million by the United States Securities and Exchange Commission (SEC) as part of its famous lawsuit.
Although this is a victory for the regulator, Ripple has nevertheless been keen to put the situation into perspective. Indeed, Brad Garlinghouse, the company's CEO, highlighted the positive point of this chapter, namely that the amount defined by the judge is far from the amount initially planned of 2 billion dollars..
The XRP token price is up 3% over the last 24 hours and the asset is currently trading at $0.59.
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Source: Press release
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