Ripple´s Stablecoin Set to Be Approved This Year by New York Regulators

Ripple´s XRP rallied up to $1.71 after reports that the New York Department of Financial Services (NYDFS) is reportedly on the verge of approving Ripple’s new stablecoin, RLUSD.

New York’s top crypto regulator is close to approving a new stablecoin issued by payments company Ripple, according to a report by FOX Business.

The stablecoin, with a potential launch date of December 4, 2024, will put Ripple in direct competition with other established U.S. stablecoin issuers like Tether, Circle, Paxos, and Gemini.

How RLUSD Will Work

Stablecoins like RLUSD are pegged to stable assets, typically the U.S. dollar, ensuring minimal price fluctuations and volatility. RLUSD is designed to facilitate seamless, low-cost cross-border payments while keeping to strict regulatory standards demanded by the U.S. SEC.

To achieve this, Ripple has already secured partnerships with several leading payment providers and cryptocurrency exchanges, including Uphold, Bitstamp, MoonPay, and Bitso. These partnerships will support RLUSD’s rollout and ensure its integration into existing financial systems.

Ripple’s subsidiary, Standard Custody & Trust Company, will issue RLUSD. This move follows Ripple’s acquisition of the licensed trust company in June earlier this year.

Furthermore, Ripple has also tested RLUSD on both the XRP Ledger and the Ethereum mainnet, showing their commitment to expanding the stablecoin’s interoperability across multiple blockchains.

Ripple’s Growth Amid Regulatory Shifts

The pro-crypto Trump administration will fuel massive growth in the stablecoin market, currently valued at over $190 billion. Ripple executives forecast a market capitalization of $2 trillion for stablecoins by 2028, emphasizing that there is an opportunity for multiple players to thrive.

Just recently, the XRP token surged over 17%, climbing past BNB to become the fifth largest cryptocurrency asset by market cap and reaching the $100 billion milestone.

Ripple is currently in a regulatory battle with the U.S. Securities and Exchange Commission as the agency continues to argue in court that XRP is an unregistered security.

The case, however, could be dropped by the pro-crypto Trump administration once he is inaugurated in January. In the meantime, Ripple’s move to launch RLUSD has renewed momentum in XRP, reflecting optimism about reduced regulatory scrutiny in the future and causing the token to surge.