Fundamental Ripple (XRP) Update: Stablecoin Native Development Progress

TL;DR

Ripple plans to launch a stablecoin called Ripple USD (RLUSD) on XRP Ledger and Ethereum, aiming to connect crypto with traditional finance. A few days ago, Ripple minted the first batch of RLUSD tokens as part of a private beta test.

The latest development

Ripple became the talk of the town earlier this year when it announced that it will introduce a stablecoin pegged to the US dollar. CEO Brad Garlinghouse argued that the product could serve as a bridge between the cryptocurrency industry and traditional finance.

The Ripple team has revealed that the stablecoin will be called Ripple USD (ticker RLUSD) and will be available on the XRP Ledger (XRPL) and Ethereum. Its launch is planned for the end of the year.

According to XRP Scan on-chain data, Ripple minted 185 RLUSD during private beta testing earlier this week. The transaction fee for the effort was 0.000135 XRP.

The Ripple team has previously stated that RLUSD will provide “deep liquidity for major trading pairs” on certain centralized exchanges. Users will also be able to ship the product worldwide in real time with minimal fees and no need for a bank account.

Some X users, including Cobb, claimed that the launch of the stablecoin could positively influence the price of Ripple’s native token, XRP, in the near future.

Controversy with the SEC

Ripple’s intention to launch a stablecoin has already raised eyebrows from the US Securities and Exchange Commission (SEC). In May, the agency labeled the product a “new unregistered crypto asset.”

The fight between Ripple and the SEC does not end with RLUSD. Those who follow the industry should be aware that the Commission sued the company in December 2020, accusing it of selling XRP in an alleged unregistered security offering.

The lawsuit went through numerous twists and turns in the following years before reaching a major milestone earlier this month. Judge Torres then ruled that the company must pay a $125 million fine for violating certain securities laws. The sum may seem substantial, but it actually represents only a fraction of the $2 billion originally demanded by the SEC.

Several industry participants interpreted the decision as a victory for Ripple, while the price of XRP also reacted positively. Both entities have until the beginning of October to appeal the sentence. While it seems more likely that the SEC will take over, there have been no signs of such a move so far.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!