Ripple has officially started the private beta testing of its proprietary USD stablecoin project Ripple USD (RLUSD) on the Ethereum mainnet and the XRP Ledger (XRPL).
The firm disclosed this in a recent post on X, sharing a link to an official press release. Interestingly, the disclosure comes two days after Judge Analisa Torres made the final decision on the Ripple v. SEC lawsuit, effectively bringing the legal battle to an end in the absence of any appeals.
Ripple USD Now in Private Beta Testing
According to Ripple, the private beta testing of RLUSD on the XRPL takes them one step closer to enhancing the network with additional digital assets of high value, more institutional use cases, greater liquidity and the prospect of fresh opportunities.
The firm confirmed that its enterprise partners are currently responsible for carrying out the private beta testing. Notably, the tests are part of efforts to ensure that the Ripple USD project is sufficiently reliable and secure.
This is an essential stage of the development phase, as these tests fish out flaws that require correcting. Ripple stressed that the stablecoin has not been released to the public for trading or purchase at press time. They warned of malicious actors that might claim to have the mandate to sell or distribute RLUSD tokens.
Testing, testing…RLUSD! We’re excited to share that Ripple USD (RLUSD) is now in private beta on XRP Ledger and Ethereum mainnet. RLUSD has not yet received regulatory approval and therefore is not available for purchase or trading – please be cautious of scammers who claim they…
— Ripple (@Ripple) August 9, 2024
Also, Ripple revealed that RLUSD has not received regulatory clearance yet. Recall that the U.S. SEC previously called the token an “unregistered asset.” Amid the ongoing private beta testing phase, the payments company provided the contract addresses of the stablecoin project on the XRP Ledger and the Ethereum mainnet for transparency purposes.
What Next?
Following the private beta testing, available only to select parties, the next development phase for a project involves the public beta testing. In this stage, the general public gets the opportunity to carry out rigorous tests on the project with no risk of real asset loss.
Once the necessary tests are complete, Ripple emphasized that it would also need to obtain regulatory approval for the launch and use of the stablecoin, expected later this year. The firm stressed that once this is out of the way, it would leverage both RLUSD and XRP for its cross-border payment services.
Ripple acknowledged the growing demand for stablecoins. Tether (USDT), the largest stablecoin by market cap, consistently commands the biggest 24-hour volume for any crypto asset. The token also boasts a market cap of $115 billion, making it the third-largest cryptocurrency.
Due to the ongoing demand for stablecoins, experts project the market to hit $2.8 trillion in the next four years. With the imminent launch of RLUSD, Ripple plans to capture a huge chunk of this market. They claim the Ripple USD will get its backing from government treasuries, cash deposits and other equivalents.
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