Open interest in %Cryptocurrency XRP (CRYPTO: $XRP) has surpassed $1 billion U.S. as Ripple Labs tests a new %Stablecoin (RLUSD).
Open Interest refers to the number of outstanding derivative contracts not settled for an asset such as XRP. An increase in open interest indicates that new money is coming into the market.
The rise in XRP’s open interest comes as Ripple Labs conducts private beta tests of its new stablecoin on the XRP Ledger and %Ethereum (CRYPTO: $ETH) blockchain.
A stablecoin is a cryptocurrency whose price is pegged to an underlying asset such as the U.S. dollar or price of gold.
Ripple Labs is a company that runs the XRP cryptocurrency on an open-source distributed ledger. Now, the company is also testing and preparing to launch its own stablecoin.
Recent activities include minting significant amounts of the RLUSD stablecoin, suggesting that the testing phase might be ending and moving into a more active phase of development.
Ripple Labs has said that it plans to use the stablecoin in its cross-border payments products, providing liquidity and facilitating faster transactions.
The stablecoin might also be integrated with various decentralized finance (%DeFi) protocols.
The price of XRP has risen 7% in the past seven days, outperforming %Bitcoin (CRYPTO: $BTC). In the last 12 months, XRP has gained 15% and currently trades at $0.59 U.S. per digital token.