RLUSD Stablecoin Still in Beta 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.
Read CRYPTONEWSLAND on google newsThe 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.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
3 reasons why Ethereum price is headed toward $4K
Relaxed Regulations Open Doors for Blockchain Innovation, Says a16z Crypto
ETH 3.0: Sharding may return to scale Ethereum to millions of TPS
Canary Capital applies to launch spot HBAR exchange-traded product