RLUSD Stablecoin Still Beta in Phase, Ripple Warns Against Fraudulent Offers

  • Ripple’s RLUSD still in private beta, not yet public; 1.7M tokens minted for testing on Ethereum and XRP Ledger.
  • RLUSD pegged 1:1 to USD, backed by US dollar deposits and treasury bills, with monthly third-party audits.
  • Technical hurdles on XRP Ledger delay RLUSD’s full functionality, particularly with automated market makers.

In a major step to counter fake news, Ripple has given key updates about its new stablecoin, Ripple USD (RLUSD). This declaration followed several news rumors within the crypto ecosystem that could have otherwise impacted the market. Ripple revealed that RLUSD is still in the private beta testing stage and, thus, inaccessible to the public. This clarification aims to mitigate the risk of scams, as notable on-chain activity indicates the minting of RLUSD tokens.

Ripple’s RLUSD Minting and Transparency

According to Ripple, the recent minting of approximately 1.7 million RLUSD tokens across Ethereum and XRP Ledger networks is part of controlled testing processes. The company stressed that despite these minting events, the RLUSD is not ready for public distribution, emphasizing ongoing beta tests. Ripple’s proactive communication ensures the community remains informed and vigilant, especially in light of potential fraudulent schemes promising early access to the new stablecoin.

Ripple’s RLUSD presents a unique approach within the stablecoin market. It is pegged 1:1 to the US dollar and collateralized by eligible assets like US dollar demand deposits and US treasury bills. The firm has also pledged to keep itself transparent via third-party audits and at least monthly attestations. This structured transparency is designed to foster trust and stability in RLUSD’s deployment on the blockchain.

Ripple’s RLUSD Launch Challenges

However, the launch faces technical and regulatory hurdles. A notable challenge is implementing the RLUSD on the XRP Ledger, particularly concerning its functionality with the ledger’s automated market maker. This issue does not affect Ripple’s Ethereum-based operations, indicating platform-specific challenges that Ripple needs to address. The company has not yet received regulatory approval for RLUSD, which is restricting its availability for trading and other transactions.

The introduction of RLUSD is expected to enhance liquidity and open new opportunities for institutional use cases on the XRP Ledger. By providing a stablecoin option, Ripple aims to increase the ledger’s utility and attract more developers and users to its platform. This strategic move could potentially elevate Ripple’s position in the competitive crypto market, aligning with its broader goals of expanding blockchain usage in financial operations and beyond.

The post RLUSD Stablecoin Still Beta in Phase, Ripple Warns Against Fraudulent Offers appeared first on Crypto News Land.


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