Ripple’s Launches RLUSD Testing After Legal Win

Ripple has recently disclosed the initiation of beta testing for Ripple USD (RLUSD) on the XRP Ledger (XRPL) and Ethereum mainnet, marking a significant milestone toward introducing more high-quality assets to the XRPL. This move aims to create new opportunities, enhance liquidity, and provide institutional use cases for users, developers, and applications.

The mainnet version of Ripple USD is now accessible on Ethereum, with future plans to extend its availability to additional blockchains and decentralized finance (DeFi) protocols gradually. However, Ripple emphasized the importance of this phase in ensuring that the stablecoin meets the highest standards of security, efficiency, and reliability before it becomes widely accessible, subject to regulatory approval. As of now, Ripple USD is not open for purchase or trading.

Ripple cautioned the community to remain vigilant against potential crypto scams that may misuse Ripple’s brand to falsely claim early access to sell Ripple USD, which is currently unavailable. Upon its release, Ripple intends to utilize both RLUSD and XRP in its cross-border payments solution to cater to global customers and significantly enhance their transaction experience.

Notably, Ripple USD is pegged at a 1:1 ratio to the US dollar (USD) and is fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. Independent accounting firms will audit these reserve assets, with Ripple committing to publishing monthly attestations to ensure transparency and accountability.

In a separate development, Ripple secured a significant legal victory against the US Securities and Exchange Commission (SEC) following a ruling by Judge Analisa Torres imposing a $125 million penalty on Ripple Labs in the SEC lawsuit. Ripple CEO Brad Garlinghouse hailed this outcome as a triumph over the SEC, considering the imposed penalty significantly lower than the SEC’s initial demand of a $2 billion fine against Ripple Labs for alleged securities violations.

The market responded positively to this news, with XRP experiencing a 26% surge and reaching a peak of $0.64 on the day of the ruling. This legal victory has implications for Ripple’s future trajectory and the broader cryptocurrency landscape, signaling potential shifts in regulatory dynamics and market sentiment.

It is essential to stay informed about these developments and their implications for the crypto industry as Ripple continues to progress with its initiatives and navigate the evolving regulatory landscape.