Ripple, the company behind the XRP cryptocurrency, has started testing its new stablecoin, called Ripple USD (RLUSD). This means the coin is being tested on both the XRP Ledger and Ethereum, but it’s not available for purchase yet.
What is RLUSD?
RLUSD is designed to be pegged to the US dollar, meaning its value should always be equal to $1. Ripple says it will be backed by real money, so you can exchange it for actual US dollars at a 1:1 ratio.
Regulatory Hurdles
The SEC (the US government agency that regulates financial markets) has been watching Ripple’s moves closely. They previously said that RLUSD might be considered an “unregistered crypto asset,” which could mean it’s not allowed to be sold in the US.
Future Plans
Ripple wants to eventually make RLUSD available on other blockchains and DeFi platforms. This could mean it could be used in more ways, like lending or borrowing money in the decentralized finance world.
The SEC’s Ongoing Battle with Ripple
The SEC is still suing Ripple over allegations that they sold XRP as an unregistered security. Last year, a judge ruled that Ripple’s open market sales of XRP weren’t securities, but they did find that Ripple’s direct sales to institutional buyers were.
This week, the judge ordered Ripple to pay a $125 million fine for those institutional sales.
Important Note:
This information is for educational purposes only and is not financial advice. You should always do your own research before investing in any cryptocurrency. /p>
