Ripple Begins Testing Stablecoin 'RLUSD'
Ripple has begun private testing of its new stablecoin, RLUSD. It is being tested on XRP Ledger and Ethereum's mainnet. The purpose of the RLUSD test is primarily to evaluate its functionality and adaptability in the market. Ripple will validate how the stablecoin is used for transactions, how stable it is, and collect important data for future development.
With RLUSD, Ripple aims to expand financial services utilizing blockchain technology. It is expected to improve scalability and transaction speed by utilizing the characteristics of the XRP Ledger, which will improve convenience for users. The adoption of Ethereum will also provide access to a wider ecosystem. RLUSD is a stablecoin that can be exchanged for U.S. dollars on a 1:1 basis, backed by U.S. dollar deposits, U.S. government short-term treasury bills, and other cash equivalents, and Ripple will issue certificates on a monthly basis.
Ripple is also considering introducing RLUSD to other blockchains or DeFi (decentralized finance) protocol apps other than XRP Ledger or Ethereum in the future. RUSD is subject to regulatory approval before it can be traded on the open market.
