- Ripple announces RLUSD private beta on XRP Ledger and Ethereum, urging caution against potential scams.
- Monthly audits ensure users’ trust and transparency by backing Ripple’s RLUSD 1:1 with USD.
In a recent tweet, Ripple announced that its stablecoin, Ripple USD (RLUSD), has entered private beta on XRP Ledger and Ethereum mainnet.
This achievement marks a key milestone in Ripple’s continued efforts to introduce high-quality assets to the XRP Ledger, potentially opening up new opportunities, liquidity, and institutional use cases for a wide spectrum of users, developers, and applications.
However, it is vital to remember that RLUSD has not yet acquired regulatory approval and, hence, is not available for purchase or trading. Ripple also cautioned the community to be cautious of scammers who falsely claim to have access to or the ability to distribute Ripple USD.
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
Ripple Ensures Transparency and Fraud Prevention with RLUSD, Backed 1:1 by USD Reserves and Regular Audits
RLUSD is intended to maintain a 1:1 value to the US dollar (USD) and will be fully backed by a combination of US dollar deposits, short-term US government treasuries, and other cash equivalents.
In order to maintain transparency and trust, a third-party accounting firm will audit these reserve assets, and Ripple has committed to publishing monthly attestations.
The launch of RLUSD is consistent with Ripple’s strategic position in a market estimated to exceed $2.8 trillion by 2028, confirming its commitment to playing a key role in the expanding stablecoin industry.
To help prevent fraud, Ripple has supplied contact information for its official channels, such as the XRPL explorer, the ERC-20 token address (0xCfd748B9De538c9f5b1805e8db9e1d4671f7F2ec), and the ETH token proxy address (0x8292Bb45bf1Ee4d140127049757C2E0fF06317eD).
This step is intended to safeguard consumers against fraudulent schemes that may exploit the Ripple brand by providing early access to RLUSD, which is currently unavailable for purchase.
Previously, Ripple’s ongoing legal battles with the SEC have seen some progress. As previously reported by CNF, Ripple intends to pay reduced SEC penalties of $125 million within the next 30 days, reaffirming the court’s decision that XRP is not a security.
The original fine was $2 billion, but the court’s judgment reduced it drastically. Despite this, as we previously noted, the SEC may appeal the court’s decision, with attorney Jeremy Hogan estimating a 60% chance of doing so. This suggests that litigation may persist, creating uncertainty in Ripple’s regulatory landscape.
Meanwhile, XRP’s price has fluctuated significantly following Ripple’s judicial victory. After temporarily rising above $0.60, the price has now slipped below this level. At the time of writing, XRP is trading at $0.5859, down 3.43% over the last 24 hours, with a daily trading volume of $1.763 billion.
