Ripple (CRYPTO:XRP) has announced that it is testing its new stablecoin, Ripple USD (RLUSD) (CRYPTO:RLUSD), on two blockchain networks: the XRP Ledger and Ethereum mainnet (CRYPTO:ETH).
The stablecoin is currently in private beta and has not yet received regulatory approval, meaning it is not available for purchase or trading.
Ripple warned users on the social media platform X to be cautious of scammers claiming they can distribute RLUSD, as the stablecoin is still in the testing phase.
Ripple President Monica Long previously stated that RLUSD is designed to complement XRP, the cryptocurrency that powers the XRP Ledger.
XRP was trading at $0.58 as of August 9, showing a 5.29% increase in the past 24 hours, according to The Block Prices.
Ripple aims to position RLUSD as a competitor to established USD-pegged stablecoins like USDT (CRYPTO:USDT) and USDC (CRYPTO:USDC).
As of August 9, USDT and USDC dominate the stablecoin market, with supplies of $121.62 billion (70.6% of the total) and $36.38 billion (21% of the total), respectively.
The total stablecoin supply reached $172.29 billion, underscoring the significant market opportunity for Ripple as it seeks to introduce RLUSD.
Ripple’s move to test RLUSD on both the XRP Ledger and Ethereum mainnet suggests a strategy to leverage both Ripple’s native blockchain and Ethereum’s extensive decentralized finance (DeFi) ecosystem.
The introduction of RLUSD could diversify the stablecoin landscape, offering users an alternative that integrates seamlessly with Ripple's existing payment infrastructure.
The next steps for RLUSD will depend on gaining regulatory approval, which is crucial for its availability and wider adoption in the market.
Ripple's entry into the stablecoin market is part of its broader effort to expand its influence and offerings within the blockchain and cryptocurrency space, potentially challenging the dominance of USDT and USDC.