Ripple is advancing plans for the stablecoin Rlusd.

Ripple has initiated the development of a fiat-pegged token named Ripple USD (RLUSD) in an effort to gain a foothold in the $160 billion stablecoin market, which is currently led by Tether.

The digital payment powerhouse announced that private beta testing has commenced on both the XRP ledger and the Ethereum mainnet, the second-largest blockchain by market capitalization.
Ripple is set to enter the stablecoin market, looking to compete with established players like Tether and Circle’s USD Coin (USDC).
Despite the competitive environment, Ripple’s CEO has emphasized the significant opportunities available for all participants in the market to thrive.
 

Circle has proven its capability to adhere to stringent stablecoin regulations in Europe and is preparing for an initial public offering in the United States, potentially becoming the first stablecoin company to go public.
 

In the U.S., lawmakers are examining stablecoin regulations that could allow banks to engage in this market.Legislators such as Patrick McHenry and Maxine Waters are reportedly making strides on this legislative effort.
 

At Consensus 2024, Garlinghouse shared with attendees that the stablecoin market holds considerable growth potential, with projections indicating it could reach a valuation of $3 trillion by 2030.
Furthermore, Ripple President Monica Long indicated that XRP is anticipated to launch its stablecoin token later this year.
On August 9, it was revealed that RLUSD will operate as a U.S. dollar-backed token at a 1:1 ratio. The company plans to use cash deposits, treasuries, and cash equivalents as its reserves. Furthermore, Ripple has pledged to provide monthly attestations and to hire a third-party accounting firm for audits. The official announcement highlights a strong commitment to regulatory compliance and approval.