Ripple’s RLUSD stablecoin has received approval from the New York Department of Financial Services (NYDFS). Ripple CEO Brad Garlinghouse shared the news on social media, asserting that the exchange and partner listings for RLUSD would go live soon. The announcement caused XRP, Ripple’s native token, to rally by 10%.
Ripple has been anticipating this scenario for an extended period now. The RLUSD, launched in August, was initially used on the XRP Ledger and Ethereum platforms. RLUSD will be a dollar-pegged stablecoin backed by the US dollar. It will also hold its reserves in short-term US government treasuries and other cash equivalents. This structure is similar to major stablecoins, such as USDT and USDC.
The NYDFS approval allows RLUSD to comply with strict regulations. Ripple is now ready to launch the stablecoin on major crypto exchanges. It has partnerships with exchanges such as Uphold, Bitstamp, and Bitso. Ripple aims to strengthen its position in the growing stablecoin market.
Ripple President Monica Long said the company focuses on payment services for institutions. The RLUSD is part of Ripple’s strategy to enter the tokenization space. Tokenization involves placing traditional financial assets on blockchain networks for efficient transactions. Ripple sees this as an opportunity to expand its reach in global payments.
Ripple Partners With Exchanges for RLUSD Stablecoin Launch
Currentl, RLUSD has $41.7 million worth of tokens on Ethereum and $10.4 million on the XRP Ledger. Ripple plans to grow this market share. The stablecoin market, led by USDT and USDC, is valued about $200 billion. Experts predict the sector could expand to trillions in the coming years.
Ripple’s RLUSD is designed to compete with other prominent stablecoins, including USDC, with a $40 billion market cap. By ensuring RLUSD meets strict NYDFS regulations, Ripple is well-placed to capture favorable ground within stablecoins.
This approval is seen as a win for Ripple in a competitive stablecoin environment. Garlinghouse highlighted the importance of compliance and adoption in his announcement. Ripple aims to leverage RLUSD to capture a larger share of the rapidly growing market for digital assets. The approval also positions Ripple as a major player in blockchain-based payment systems.
