Ripple Kicks Off Beta Testing for Its New RLUSD Stablecoin on the XRP Ledger and Ethereum

Ripple has kicked off beta testing for its new dollar-pegged stablecoin, Ripple USD (RLUSD), on the XRP Ledger and the Ethereum (ETH) mainnet.

The San Francisco payments company notes Ripple USD is not yet available for purchase and is still subject to regulatory approval.

The firm says the stablecoin will be fully backed by cash and cash equivalents and redeemable on a 1:1 basis for US dollars. Ripple also wants to eventually expand RLUSD’s availability to additional blockchains and decentralized finance (DeFi) protocols over time.

Ripple first rolled out plans for the new stablecoin back in April. In a court filing in May, the U.S. Securities and Exchange Commission (SEC) argued that the planned stablecoin represented an “unregistered crypto asset.”

The court filing was related to the SEC’s securities lawsuit against Ripple, which commenced when the regulator sued the firm in late 2020 for allegedly selling XRP as an unregistered security.

Last year, US District Judge Analisa Torres handed Ripple a partial victory when she ruled that the company’s automated, open-market sales of XRP did not constitute security offerings, though she did side with the SEC’s claim regarding Ripple’s sales of XRP directly to institutional buyers.

In an order filed this week, District Judge Torres imposed a $125 million civil penalty against the San Francisco-based payments company for those institutional sales.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post Ripple Kicks Off Beta Testing for Its New RLUSD Stablecoin on the XRP Ledger and Ethereum appeared first on The Daily Hodl.