Latest Ripple Pilots Rlusd On Ethereum L2s In Multichain Push

Ripple is testing RLUSD on layer 2s Optimism, Base, Ink, and Unichain, after the token initially launched on the XRP Ledger and Ethereum in 2024.

Ripple Labs is expanding its US dollar-backed stablecoin RLUSD to Ethereum layer-2 blockchains as part of a pilot while it awaits regulatory approval for a full rollout next year.

In partnership with Wormhole, a crosschain interoperability protocol that allows assets to move between different blockchains, the pilot will test RLUSD on Optimism, Base, Ink (an Ethereum layer 2 developed by Kraken), and Unichain, according to a statement from Ripple on Monday.

Initially, RLUSD was issued on the XRP Ledger and Ethereum; however, Ripple said that the latest expansion is “essential for a scalable, efficient, and interoperable future.”

“As chains continue to build for real-world use, the need for a highly regulated stablecoin is stronger than ever,” the Ripple team added.

The Wormhole team said in an X post on Monday that its Native Token Transfers standard will allow RLUSD to move across blockchains as the real token, as opposed to a synthetic or wrapped copy, which will help maintain liquidity.

In some multichain setups, when a token is transferred, it’s locked on its original blockchain while a wrapped copy version is minted on another.

“With NTT, token issuers eliminate the need for fragmented liquidity or wrapped assets, allowing a single, canonical version of RLUSD to exist natively on each blockchain with Ripple owning the contracts,” the Wormhole team added.

RLUSD will launch on subsequent chains next year, but the launch is still subject to final regulatory approval, according to Ripple.

RLUSD is issued under the state-level New York Department of Financial Services Trust Company Charter, while the company has also applied for a federal trust bank charter from the Office of the Comptroller of the Currency, to add Federal oversight.

Source: CoinTelegraph