XRP issuer Ripple is advancing its stablecoin plans after CEO Brad Garlinghouse introduced the idea during Consensus 2024. Ripple has initiated work on a fiat-pegged token called Ripple USD (RLUSD), aiming to tap into the $160 billion stablecoin market, currently led by Tether. The company announced that private beta testing has begun on both XRP’s ledger and the Ethereum mainnet, crypto’s second-largest blockchain by market cap.

Testing Ripple USD

Ripple USD (RLUSD) is now in private beta on XRP Ledger and Ethereum mainnet. However, RLUSD has not yet received regulatory approval and is not available for purchase or trading. Be cautious of scammers claiming otherwise.

At Consensus 2024, Garlinghouse noted that the stablecoin market could become a $3 trillion industry by 2030. Ripple president Monica Long also suggested that XRP would likely launch its stablecoin token this year.

An announcement on August 9 stated that RLUSD will operate as a U.S. dollar-backed token in a 1:1 ratio. The firm plans to use cash deposits, treasuries, and cash equivalents as reserves. Ripple also committed to releasing monthly attestations and employing a third-party accounting firm for audits, signaling a move toward regulatory compliance and approval.

Competing in the Stablecoin Market

Entering the stablecoin market means Ripple will compete with established players like Tether and Circle’s USD Coin. Despite the competition, Ripple’s CEO emphasized that there is ample room for growth for all players.

Circle has shown the capability to comply with comprehensive stablecoin regulations in Europe. It is also preparing for an initial public offering in the U.S., potentially becoming the first stablecoin company to list shares.

U.S. policymakers are considering stablecoin regulations that might allow bank participation in the sector. Legislators such as Patrick McHenry and Maxine Waters have reportedly made progress toward such a bill.

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