Ripple is on the brink of launching its regulated stablecoin RLUSD, with approval from the New York Department of Financial Services (NYDFS) expected to be finalized soon.
According to a report from FOX Business, the company has tentatively planned to launch on December 4. This will be a major step in Ripple’s expansion into the tightly regulated digital finance space in New Zealand. York.
Ripple’s Stablecoin Could Provide a Regulated Entrance to the US Crypto Market
Ripple’s entry into the stablecoin market puts it in direct competition with established US issuers such as Circle, Paxos and Gemini.
If possible latchthe approval will allow Ripple to offer RLUSD as a stable and regulated digital currency alternative to XRP. This may appeal to customers looking to avoid the volatility and regulatory challenges associated with other cryptocurrencies.
Meanwhile, New York remains an important market for stablecoin issuers. The state maintains a regulatory framework for these assets. NYDFS imposes strict requirements, including standards for transparency, security and consumer protection.
“XRP, 1,000 times faster and 1,000 times cheaper than Bitcoin, when combined with Ripple’s upcoming RLUSD Stablecoin, an instrument that our US Treasury Department recently considered an important liquidity product Backed by U.S. Treasury Bills, America and the world escape economic chaos and destruction,” Rob Cunningham write on X (formerly Twitter).
Many companies like Ripple often seek limited purpose fiduciary licenses to provide digital asset services without the extensive scrutiny that traditional banks face. Meanwhile, other companies such as Coinbase and Robinhood operate under New York’s BitLicense to facilitate cryptocurrency trading and storage.
Likewise, Ripple’s stablecoin launch will include partners like Bitstamp, Moonpay, and Uphold. This will ensure widespread accessibility for users when the product is released to the market.
“RLUSD will only be on XRPLedger and will not be multi-chain. It is intended for bank-level settlement and will compete with USDT/USDC in cross-border payments,” influencer Martin Folb write on X (formerly Twitter).
XRP Market Growth Reflects Rising Optimism
Ripple’s XRP token recently surpassed BNB to become the 5th largest cryptocurrency by market capitalization. This morning, the altcoin surpassed $100 billion for the first time in over three years.
Overall, November saw the value of XRP increase by over 230%. This is mainly driven by increased investor confidence and the ongoing market-wide price increase.
The resignation of SEC Chairman Gary Gensler earlier this month contributed to the positive sentiment surrounding Ripple. Gensler’s departure has fueled speculation that Ripple could see an easing of regulatory pressure from the SEC, which has often been aimed at the company in the past.
Institutional interest in XRP is also increasing. Last week, WisdomTree filed an application to launch an XRP ETF in Delaware. This is the third application following similar filings from Bitwise and Canary Capital in October.