• Ripple announced the private testing of its stablecoin RLUSD on XRP Ledger and Ethereum.
• RLUSD is awaiting regulatory approval before users can purchase and trade with it.
• XRP is down over 6% following the announcement.

Ripple revealed on Friday that it has begun beta testing for its RLUSD stablecoin, pending regulatory approval for its usage. Meanwhile, XRP has declined over 6% in the past 24 hours but could see a rally after the announcement.

XRP down amid Ripple's move to launch USD stablecoin

Ripple has begun testing its US Dollar-backed Ripple USD (RLUSD) stablecoin on the XRP Ledger and Ethereum Mainnet, according to an announcement on its X handle on Friday. The fintech company plans for the stablecoin to be released to the public following approval from regulatory authorities.

The company claims that RLUSD will be fully backed by the US Dollar and pegged to its price 1:1. The asset will also be backed by short-term US Treasuries and other cash equivalents. Ripple also claims that a third-party accounting firm will audit the reserve assets and provide monthly reports.

Ripple initially announced its intention to launch a stablecoin in April. The company states that the stablecoin will help serve users by bringing high-quality assets to the XRP Ledger.