Ripple begins rolling out its stablecoin, RLUSD

On August 9th, Ripple Labs announced the first tests of its USD-pegged stablecoin, Ripple USD (RLUSD), on the XRP Ledger (XRPL) and Ethereum mainnets. The company also revealed plans to deploy the fiat-backed coin on additional blockchain networks in the future.

Ripple Labs stated that RLUSD will be over-collateralized, meaning that each unit of RLUSD will be backed by USD reserves or short-term cash equivalents at a 1:1 ratio to the US dollar. To ensure transparency and accountability, Ripple has committed to third-party audits of the underlying cash assets and will publish monthly reports on the reserves.

The company also emphasized that the stablecoin is currently in beta testing with corporate partners and cautioned users to be wary of scammers claiming to offer early access to RLUSD, which is not yet available for purchase or live trading.

Lastly, Ripple Labs reaffirmed its commitment to both XRP and RLUSD, dismissing rumors that it would shift focus from XRP to its new stablecoin.

XRP price surges after legal victory

This announcement follows a ruling by Judge Analisa Torres on August 7th, where Ripple Labs was fined $125 million in the Securities and Exchange Commission (SEC) lawsuit, originally filed in 2020. Ripple CEO Brad Garlinghouse described the fine as a “victory,” noting that the SEC’s initial claim of nearly $2 billion was significantly reduced.

As a result of the ruling, the crypto market reacted quickly. The price of XRP surged by as much as 27%, reaching a peak of $0.64. However, the price has since stabilized, and as of the time of writing, stands at $0.58.