Recently, Ripple made headlines by announcing its plans to launch a stablecoin named Ripple USD (RLUSD) on both the XRP Ledger and Ethereum platforms. This move is intended to bridge the gap between the cryptocurrency industry and traditional finance, according to Ripple’s CEO Brad Garlinghouse.
In a recent development, Ripple minted the first batch of RLUSD tokens as part of a private beta testing phase. The on-chain data from XRP Scan revealed that 185 RLUSD tokens were minted, with a transaction fee of 0.000135 XRP. This testing phase aims to ensure the stability and functionality of the stablecoin before its public launch later this year.
Ripple’s team has highlighted the benefits of RLUSD, including deep liquidity for major trading pairs on centralized exchanges. Additionally, users will be able to send RLUSD globally in real-time with minimal fees and without the need for a traditional bank account. The launch of RLUSD has also sparked discussions about its potential impact on the price of Ripple’s native token, XRP.
However, Ripple’s journey towards launching RLUSD has not been without challenges. The US Securities and Exchange Commission (SEC) has raised concerns about the stablecoin, labeling it as a “new unregistered crypto asset.” This regulatory scrutiny comes in the wake of a lawsuit filed by the SEC against Ripple in December 2020, accusing the company of conducting an unregistered securities offering through the sale of XRP.
The legal battle between Ripple and the SEC has seen several developments over the past year, culminating in a recent ruling by Judge Torres. The judge ordered Ripple to pay a $125 million fine for violating securities laws, a mere fraction of the $2 billion initially demanded by the SEC. While many in the industry viewed this ruling as a victory for Ripple, both parties have the option to appeal the decision by early October.
As Ripple prepares to launch RLUSD and navigate the challenges posed by regulatory scrutiny, the industry will be closely watching the developments unfold. The potential impact of RLUSD on the cryptocurrency market, as well as Ripple’s ongoing legal battle with the SEC, will likely shape the future trajectory of both the company and its stablecoin.