New York regulator poised to greenlight Ripple's RLUSD stablecoin amid rising market demand
New York regulator poised to greenlight Ripple's RLUSD stablecoin amid rising market demand
Ripple Labs’ RLUSD stablecoin, a dollar-pegged and overcollateralized digital currency, is set to receive approval from the New York Department of Financial Services (NYDFS), according to sources reported by Fox Business on Nov. 29. This milestone could pave the way for the stablecoin's launch as early as Dec. 4, marking Ripple’s latest venture into the fast-growing stablecoin market.
Ripple first announced RLUSD in April 2024 as a competitor to USD Coin (USDC) and Tether (USDT), emphasizing trust, stability, and utility. The company plans to integrate RLUSD into its cross-border payment solutions alongside XRP, aiming to enhance global liquidity and settlement speed. Ripple executives project the stablecoin market could reach $2 trillion by 2028, highlighting the significant opportunities for multiple issuers.
Expanding the ecosystem
Ripple has already initiated testing for RLUSD on the XRP Ledger and Ethereum mainnet, with plans to expand to additional blockchains. To ensure transparency and compliance, Ripple has committed to third-party audits and monthly collateral reserve reports. The stablecoin will also be supported by major exchanges, including Bitstamp, Uphold, and MoonPay.
Ripple CEO Brad Garlinghouse reaffirmed the company’s strategy to use XRP to bolster RLUSD’s liquidity while adhering to stringent regulatory standards under its New York Trust Company Charter. Despite speculation about a pivot from XRP to RLUSD, Ripple has reiterated its commitment to its flagship token as a core component of its ecosystem.
The anticipated NYDFS approval positions Ripple to strengthen its role in the stablecoin market, potentially reshaping cross-border payment systems. RLUSD’s compliance-focused approach and integration with existing Ripple products may provide a competitive edge, especially as the stablecoin landscape continues to expand.
The upcoming launch not only solidifies Ripple’s foothold in digital finance but also underscores the increasing regulatory acceptance of blockchain-based financial solutions in the United States.
Meanwhile, XRP whales move 140M coins as the Ripple-SEC lawsuit approaches its conclusion.
