The New York Department of Financial Services (NYDFS) has finally approved the Ripple Stablecoin RLUSD following months of consideration. The regulatory approval marks an important milestone in Ripple’s desire to expand into the stablecoin market.
According to a December 10, 2024, post on X by Ripple CEO Brad Garlinghouse, the XRP developer was identifying an appropriate exchange partner following the RLUSD approval. The company launched plans to create a stablecoin last April to compete with the market leader Tether’s USDT.
Garlinghouse Warns Against Fakes amid RLUSD Approval
The RLUSD approval indicates that Ripple has complied with all the regulatory guidelines required by NYDFS, which are meant to ensure its operational security and legal standing. Since last August, Ripple has been testing the RLUSD across numerous blockchains, including the XRPL Ledger and Ethereum (ETH).
Without giving any specific dates for the launch, Garlinghouse stated that the launch of the Ripple stablecoin RLUSD was imminent. The Ripple CEO said, “This just in…we have final approval from NYDFS for RLUSD! Exchange and partner listings will be live soon.”
To protect the Ripple community from fraudsters, Garlinghouse issued a cautionary note asking enthusiasts to be careful to avoid potentially fake Ripple Stablecoin RLUSD listings. He urged the community to look out for any updates regarding the token launch only from Ripple’s official platform. The warning from the Ripple chief comes after widespread rumours already stated that the launch would happen in early December. According to the firm, the preceding claims were unfounded and should, therefore, be ignored.
Ripple stablecoin RLUSD a Technical Advantage in the Institutional Market.
The Ripple Stablecoin RLUSD will be backed by U.S.U.S. dollar deposits on a 1:1 USD-RLUSD, short-term U.S.U.S. government treasuries, and several other cash equivalents, just like its competitor, USDT. Ripple aims to use the RLUSD to penetrate the United States market, which Circle’s USDC currently dominates.
Circle’s USDC is presently the world’s second-largest stablecoin, with a market cap of over $40 billion. Garlinghouse stated further that the Ripple Stablecoin USDT will initially target the institutional market once it gets listed in the selected exchanges.
Commenting earlier in June this year, Ripple President Monica Long called the RLUSD a “complementary and additive” to the XRP. The fact that Ripple is already a market leader as far as blockchain-based cross-border remittance is involved and is already an established partner of numerous institutions is likely to give the Ripple stablecoin RLUSD a technical advantage in getting a share of the institutional market.
Moreover, the launch of the new stablecoin makes a pivotal statement when the company wants to recreate its image following the prolonged legal battle with the Securities and Exchange Commission (SEC).
A Turning Point in Ripple’s Legal Battles
The four-year battle between Ripple and the SEC since early 2020 has been a significant problem that has disrupted the company’s operations and caused XRP to lose its value considerably. It should be remembered that XRP held the third position regarding market capitalization when the lawsuit was filed in 2020. However, the token plummeted and fell out of the top 10 position. Nonetheless, there was a turning point in 2024 when Ripple secured partial victory against the SEC, again boosting the token’s position.
Conclusion
The anticipated Ripple stablecoin RLUSD launch has worked the magic and helped the token XRP regain the third position in market capitalization. Moreover, news surrounding the RLUSD approval gave Ripple’s native token a 10% surge, giving XRP even more significant momentum when a crypto rally is underway following the election of a crypto-friendly administration in the United States.
XRP has surged a record 400% since the November 5 U.S.U.S. presidential elections and surpassed Solana to become the fourth leading digital asset globally. The introduction of Ripple Stablecoin RLUSD could give Ripple greater leverage and enhance its cross-border payment solution through the combination of XRP and RLUSD.
