Ripple Tests RLUSD Stablecoin in Singapore's MAS Sandbox
Ripple and supply chain specialist Unloq are testing automated trade settlements using RLUSD on the XRP Ledger within Singapore's regulatory sandbox. The pilot, part of Project BLOOM, explores how stablecoins can reduce cross-border payment settlement times from days to minutes.
Key Takeaway
Sandbox testing doesn't equal approval — RLUSD faces long road before competing with USDT in Asian corridors.
Ripple partnered with supply chain specialist Unloq to test its RLUSD stablecoin under the Monetary Authority of Singapore's regulatory sandbox.
The testing happens through Project BLOOM — short for Borderless, Liquid, Open, Online, Multi-currency — a collaborative initiative that includes traditional banks and fintech firms exploring digital settlement assets. Ripple and Unloq are specifically testing automated trade settlements using RLUSD on the XRP Ledger in a controlled environment.
Singapore launched its FinTech Regulatory Sandbox in 2016 to let companies test business models without full compliance burdens. The framework temporarily relaxes requirements around asset maintenance, board composition, minimum paid-up capital, and technology risk management on a case-by-case basis. MAS added Sandbox Express in August 2019, targeting 21-day approval timelines for eligible applicants.
The RLUSD pilot does not mean full regulatory approval or licensure. All sandbox participants must implement consumer consent mechanisms, risk mitigation measures, and escalation procedures to regulators throughout the testing phase.
Ripple's move adds pressure on USDT and USDC, which dominate stablecoin settlements in Asia. OFW remittance corridors rely heavily on USDT for cross-border transfers, but RLUSD's integration with XRP Ledger could offer faster settlement speeds if it clears regulatory hurdles beyond Singapore.
Singapore positions itself as a leading hub for tokenized finance, with MAS actively supporting digital asset experimentation since the sandbox framework debuted in 2016.
This article was written based on reporting from Cointelegraph.
