Ripple Labs, a leading technology company in the blockchain space, announced that it has initiated the testing phase of its new stablecoin, Ripple USD (RLUSD), on the XRP Ledger and Ethereum (CRYPTO:ETH) blockchain networks.
This move marks a significant step in Ripple's (CRYPTO:XRP) efforts to expand its ecosystem and provide more high-quality assets within its network.
The company shared the news on X, revealing that RLUSD is currently in private beta on both the XRP Ledger and Ethereum mainnet.
However, Ripple emphasised that RLUSD has not yet received regulatory approval and is not available for purchase or trading.
The company also cautioned users to be wary of potential scammers who might falsely claim they can distribute the stablecoin.
Ripple's foray into stablecoins represents an important milestone in its strategy to enhance liquidity, create new opportunities, and cater to institutional use cases on the XRP Ledger.
By introducing RLUSD, Ripple aims to offer a stable digital asset pegged one-to-one with the US dollar, making it easier for crypto users and investors to exchange assets within the ecosystem.
In addition to being available on the XRP Ledger and Ethereum, Ripple has plans to expand RLUSD to other blockchains and decentralised finance (DeFi) protocols.
The current beta phase involves rigorous testing by Ripple's partners to ensure the stablecoin meets the highest standards of security, efficiency, and reliability before it is rolled out to the wider market.
The testing of RLUSD comes shortly after Ripple Labs concluded a four-year legal battle with the US Securities and Exchange Commission (SEC), resulting in a $125 million fine.
Despite this, the news of the stablecoin testing and the legal resolution has had a positive impact on XRP, Ripple's native cryptocurrency, which saw a 23% gain in value.
Ripple's ongoing efforts to innovate and expand its ecosystem signal its commitment to maintaining a strong position in the blockchain and cryptocurrency industry, with RLUSD poised to play a key role in the future of digital finance.