• Ripple's new stablecoin is being tested on Ethereum and XRP Ledger.
• RLUSD isn't tradeable yet as it still has to get regulatory approval.

Ripple, the enterprise-focused blockchain service closely related to the XRP Ledger (XRP) , said on Friday that it begun testing its stablecoin on the Ethereum (ETH) mainnet and XRP Ledger.

"Ripple USD is currently in its beta phase and is being rigorously tested by our enterprise partners," the company said in a blog post. "This phase is crucial for ensuring that the stablecoin meets the highest standards of security, efficiency, and reliability before it becomes widely available, and after receipt of regulatory approval."

The announcement came after Ripple laid out its plans in April to enter the rapidly growing stablecoin market with its own U.S. dollar-pegged token. Stablecoins are a $160 billion market currently and a key piece of infrastructure in the crypto economy used for trading and payments on blockchains. The market is currently dominated by the two largest stablecoins, Tether's USDT and Circle's USDC. Broker Bernstein forecasted that the market could grow to $2.8 trillion by 2028.

Read more: Ripple, Developer Behind XRP Ledger, Enters Stablecoin Fray vs. Tether, USDC

Ripple USD (RLUSD) is backed by short term U.S. Treasuries, dollar deposits and cash equivalents. The reserves will be audited by a third-party accounting firm, and Ripple plans to report monthly attestations, the blog post said.

The company said that it will offer both RLUSD and XRP for global payments services to clients. The stablecoin isn't tradeable yet as its hasn't received regulatory approval, Ripple said.

Read more: XRP Jumps 17%, Beating Bitcoin Gains, as Ripple-SEC Case Ends