Ripple partners begin beta testing of new stablecoin Ripple USD

Ripple has announced that its enterprise partners have commenced beta testing of the Ripple USD (RLUSD) stablecoin. This testing phase aims to ensure that the stablecoin meets stringent standards of security, efficiency, and reliability ahead of its expected launch later this year.

The Ripple USD stablecoin is designed to maintain a 1:1 value with the US dollar (USD) and will be fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. "Ripple is in an ideal position to launch a stablecoin that addresses a market projected to grow to over USD $2.8 trillion by 2028," the company stated in a recent blog post.

Ripple urged caution among users, warning of potential crypto scams that might exploit the company's name to trick individuals into purchasing Ripple USD, which is not yet available for trading or purchase. "Until then, please be cautious of crypto scams which may exploit Ripple's brand and purport to have early access to sell Ripple USD, which is not available at this time," the company cautioned.

Additionally, Ripple has announced a partnership with the Dubai International Financial Centre (DIFC) Innovation Hub. This collaboration aims to accelerate blockchain and digital assets innovation in the UAE. The partnership is expected to support early-stage companies and scale-ups in the region, promoting blockchain and crypto adoption.

The Ripple USD stablecoin is currently being tested on both the XRP Ledger (XRPL) and the Ethereum mainnet. Plans are in place to expand its availability to additional blockchains and decentralised finance (DeFi) protocols over time. According to Ripple, this represents a significant milestone and moves them closer to offering more high-quality assets on the XRPL. "This is a significant milestone and a step closer to bringing more high-quality assets to the XRPL, driving new opportunities, liquidity, and institutional use cases for users, developers, and applications," Ripple noted in their announcement.

In terms of financial security, Ripple has committed to periodic audits and transparency. The reserve assets backing Ripple USD will be audited by a third-party accounting firm, with monthly attestations published to ensure full transparency. "These reserve assets will be audited by a third-party accounting firm, and Ripple will publish monthly attestations," the company confirmed.

Upon its launch and after receiving regulatory approval, Ripple USD will be used alongside XRP in Ripple's cross-border payments solutions. This dual usage is expected to significantly improve the experience for Ripple's global customer base. "Once Ripple USD is available, Ripple will use both RLUSD and XRP in its cross-border payments solution to serve its global customers and dramatically improve their experience," the company said.

Ripple has assured its community that updates will be provided throughout the testing phase and leading up to the stablecoin's launch. The company expressed gratitude for the community's patience and enthusiasm as they work towards launching Ripple USD. "Ripple is committed to transparency and will keep the community updated on the progress of Ripple USD. We appreciate your patience and enthusiasm as we work towards making RLUSD a robust and reliable stablecoin for everyone," the announcement stated.