San Francisco-based fintech startup Ripple is close to securing the final greenlight from the New York Department of Financial Services (NYDFS) for its overcollateralized dollar-pegged RLUSD stablecoin.
According to a leak reported by Fox Business, Ripple is anticipated to launch RLUSD in the American digital finance market in the coming days after months of testing. The forthcoming stablecoin will bolster Ripple’s position in the U.S. digital market and the wider stablecoin ecosystem.
RLUSD To Reportedly Go Live On Dec. 4
The New York Department of Financial Services is reportedly set to approve Ripple’s RLUSD stablecoin. Sources revealed to Fox Business that the company expects to roll out the new offering as early as December 4.
Unlike XRP, which has suffered regulatory setbacks in the U.S. and price instabilities, the RLUSD stablecoin seeks to maintain a steady value tied to the U.S. dollar. This stability makes it much more attractive to individuals and institutions looking for a safe and reliable digital asset for transactions. Winning approval from the NYDFS, one of the strictest financial regulators, would strengthen RLUSD’s credibility.
According to @EleanorTerrett‘s recent article, the New York Department of Financial Services (NYDFS) is close to approving RLUSD. This approval highlights Ripple’s dedication to operating within a strict regulatory framework.
2/11https://t.co/NyQDaMMc1d
— Max Avery (@realMaxAvery) November 29, 2024
If the NYDFS indeed gives its blessing, the RLUSD stablecoin could revolutionize Ripple’s position in digital finance. This would enhance its competitiveness with other stablecoin issuers and fortify its standing in the U.S. market.
Ripple’s Grand Foray Into The Stablecoin Market
As you may recall, Ripple initially announced RLUSD in April 2024. The asset, the company said at the time, would be fully backed by U.S. dollars, short-term U.S. government treasuries, and “other cash equivalents.” Then in August, the blockchain payments firm kicked off testing of the stablecoin on its own XRP Ledger (XRPL) and the second biggest crypto network, Ethereum.
Ripple eased investors’ fears by revealing that it would use both the RLUSD stablecoin and XRP in its near-instant international payments solution to serve its customers worldwide and significantly improve their experience.
Notably, Ripple is teaming up with Uphold, Moonpay, and Bitstamp to introduce the stablecoin. These strategic collaborations will promote the asset’s adoption by customers by leveraging the top exchanges’ huge user bases and expertise in digital payments.
The price of XRP has been climbing since Donald Trump’s election victory on Nov. 6 as investors anticipate a more lenient regulatory environment under his pro-crypto administration. Further gains were fueled by the revelation that crypto foe Gary Gensler will step down from his role as the Securities and Exchange Commission chair in January, which could signal that a potential spot XRP exchange-traded fund is now a matter of when not if.
Moreover, the forthcoming RLUSD approval could help propel XRP above the longstanding all-time peak of $3.40. The asset recently hit yet another multi-year high of $2.81.
