Stablecoin RLUSD Gets Final Approval From New York Regulators – Brad Garlinghouse
Ripple Secures NYDFS Approval for RLUSD Stablecoin to Rival USDT and USDC, Boosting XRP Ecosystem and Cross-Border Payments
The New York Department of Financial Services (NYDFS) granted Ripple Labs final approval to launch its RLUSD stablecoin. Ripple CEO Brad Garlinghouse confirmed the news on December 10, with plans for the stablecoin to, in the future, rival established companies like Tether’s USDT and Circle’s USDC.
“This just in…we have final approval from @NYDFS for $RLUSD! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from @Ripple first.” Garlinghouse shared this on his X page.
RLUSD to Compete With USDT and USDC
RLUSD is Ripple’s stablecoin attempting to compete with dominant stablecoins like Tether’s USDT and Circle’s USDC.
Unlike normal cryptocurrencies, RLUSD will be pegged at a 1:1 ratio with the US dollar. Ripple plans to back the stablecoin with USD deposits to ensure stability and eliminate volatility.
Furthermore, to ensure credibility, Ripple has promised to conduct regular third-party audits and monthly transparency reports on RLUSD’s reserves.
The combined market cap of USDT and USDC currently stands at around $180 billion, but Ripple executives are optimistic. Analysts predict the stablecoin market will reach a $2 trillion market cap by 2028 making this a significant step in the right direction.
Ripple’s Ecosystem Integrating RLUSD and XRP
Ripple has taken a strategic approach to integrating RLUSD into its ecosystem whilst taking into account its native cryptocurrency, XRP.
In June, Ripple President Monica Long stated that RLUSD would be “complementary and additive” to XRP. Both assets will work together to enhance Ripple’s cross-border payment solutions. According to him, RLUSD will provide liquidity and faster settlement times, while XRP will continue to strengthen Ripple’s existing blockchain ecosystem.
RLUSD has also recorded successful testing on the XRP Ledger and Ethereum networks. With this final approval, the company is now ready to launch RLUSD on platforms partnered with Ripple, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish.
XRP Surges Amid RLUSD Approval
Ripple’s stablecoin launch coincides with a rising rally in XRP. Since the U.S. elections, XRP has surged by 400%, surpassing Solana to become the fourth-largest cryptocurrency by market cap. XRP is currently trading at $2.31, up by over 4% today according to data from CoinMarketCap.
Although a timeline for the stablecoin’s release, with the NYDFS approval secured, is not available yet, Ripple’s RLUSD, when launched, is set to compete fiercely with the established stablecoins. As the stablecoin launches on Ripple’s various partner platforms, it could significantly impact the stablecoin market while strengthening Ripple’s position in the fintech space.
