Ethereum

2024

On Aug. 9, Ripple Labs announced the first tests of its United States dollar-pegged stablecoin, Ripple Labs’ Ripple USD (RLUSD), on the XRP ledger (XRPL) and Ethereum mainnets, with plans to deploy the fiat-backed token on additional blockchain networks in the future.
According to Ripple Labs, the&nbsp;upcoming stablecoin <a href="https://cointelegraph.com/news/ripple-announces-stablecoin-launch">will be overcollateralized</a>, meaning that each unit of RLUSD is backed by USD reserves or short-term cash equivalents in a bank, at a ratio of 1:1 with the US dollar. To guarantee transparency and accountability, Ripple also promised third-party audits of the underlying cash assets and monthly reports published on the reserves.
The crypto firm also reiterated its commitment to using both XRP (<a href="https://cointelegraph.com/xrp-price-index">XRP</a>) and RLUSD to serve markets, quelling rumors that the firm would abandon XRP to focus on its new stablecoin.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/627bec43-9d8f-4fca-adc9-d20cd189176c.png" alt="Ripple begins testing RLUSD stablecoin on mainnet " title="">
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 The XRPL contract address for the stablecoin tests. Source: Ripple Labs
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In the announcement, Ripple Labs stressed that the stablecoin was in beta testing with enterprise partners and cautioned users against scammers purporting to sell or provide early access to RLUSD, which is not currently available for purchase or live trading.
<h2 id="ripple-hit-with-125-million-penalty-in-sec-lawsuit">Ripple hit with $125-million penalty in SEC lawsuit&nbsp;</h2>
The mainnet tests of RLUSD followed an Aug. 7 ruling from Judge Analisa Torres <a href="https://cointelegraph.com/news/sec-ripple-labs-liable-civil-penalty">imposing a $125-million penalty on Ripple Labs</a> in the Securities and Exchange Commission’s lawsuit, which was first filed in 2020.
Related:&nbsp;<a href="https://cointelegraph.com/news/ripple-donates-1m-deaton-senate-race-warren">Ripple backs Deaton with $1M donation in senate race against Warren: Law Decoded</a>
Ripple CEO Brad Garlinghouse hailed the penalty as a “victory” against the SEC, which requested the court impose a staggering $2-billion fine against Ripple Labs for the alleged securities violations outlined in its lawsuit.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/d49096e3-527a-4706-a026-64b634d5da48.png" alt="Ripple begins testing RLUSD stablecoin on mainnet " title="">
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 Source: <a href="https://x.com/bgarlinghouse/status/1821289051191963861" target="_blank" rel="noopener nofollow">Brad Garlinghouse</a>
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Unsurprisingly, the price of XRP responded to the news with positive price momentum,&nbsp;<a href="https://cointelegraph.com/news/xrp-price-cryptocurrency-surges-ripple-labs-sec-lawsuit">soaring by 26%</a> and reaching a high of $0.64 on the same day the ruling was issued.
<h3 id="xrp-ledger-sees-a-sharp-decline-in-transactions">XRP Ledger sees a sharp decline in transactions</h3>
Despite positive developments for Ripple, the XRPL experienced a&nbsp;<a href="https://cointelegraph.com/news/ripple-xrp-ledger-onchain-transactions-q2-2024-results-xrp">65.6% drop</a> in transaction volume in the second quarter of 2024, according to Ripple Labs’ Q2 2024 XRP Markets Report.
Ripple’s report revealed a sharp decline from 251,397,881 transactions in the first quarter to just 88,388,029 transactions in the second quarter, accompanied by a significant rise in average cost per transaction on the ledger.
Magazine:&nbsp;<a href="https://cointelegraph.com/magazine/pro-xrp-lawyer-john-deaton-10x-more-into-btc-4x-more-into-eth-hall-of-flame/">Pro-XRP lawyer ‘10x more into BTC, 4x more into ETH’:&nbsp;</a><a href="https://cointelegraph.com/magazine/pro-xrp-lawyer-john-deaton-10x-more-into-btc-4x-more-into-eth-hall-of-flame/">John Deaton, X Hall of Flame</a>

Ripple begins testing RLUSD stablecoin on mainnet

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Cointelegraph

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