Ripple Labs has officially received approval from the New York Department of Financial Services (NYDFS) for its upcoming RLUSD stablecoin.
This move, as a result, marks a key development for Ripple as it prepares to launch a new stablecoin, pegged to the US dollar, and expand its presence in the cryptocurrency market.
Ripple CEO Brad Garlinghouse has confirmed the approval on x (formerly Twitter), noting that exchange and partner listings for RLUSD would be available soon.
“When RLUSD is live, you’ll hear it from Ripple first,” Garlinghouse said.
This stablecoin is part of Ripple’s broader strategy to compete in the growing stablecoin market, which is expected to reach a market cap of $2 trillion by 2028.
The approval by NYDFS is a crucial step in the rollout of RLUSD.
It ensures that the stablecoin meets regulatory standards and can operate within the regulatory framework of New York.
Moreover, Ripple had previously tested RLUSD on the XRP Ledger and the Ethereum blockchain, and now, the company is preparing for its full-scale launch.
RLUSD is a dollar-pegged stablecoin designed to offer a more compliant and overcollateralized alternative to existing stablecoins like USDC and USDT.
Ripple has committed to conducting regular third-party audits on the collateral backing RLUSD, which consists of cash and short-term cash equivalents.
Monthly reports will be made available to ensure transparency and trust with users.
Concurrently, Ripple’s stablecoin will also leverage XRP to enhance liquidity and provide faster settlement times.
Meanwhile, Ripple executives have ealier emphasized the importance of using its existing blockchain products to support RLUSD’s functionality and help it scale.
As part of the rollout, Ripple has already secured several exchange partners for RLUSD.
These include Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish.
This wide range of partners will help ensure that RLUSD has access to a large user base and is integrated into various financial platforms.
Ripple CEO Brad Garlinghouse has stressed the importance of compliance and stated that Ripple’s involvement with NYDFS ensures the company adheres to the necessary legal and regulatory requirements.
The goal is to bring a stable and compliant product to market, addressing the needs of both retail and institutional users.
Post this announcement, XRP price has seen a price recovery despite having pulled below the $2 support in the last 24 hours.
As of press time, XRP price was exchanging hands at $2.32, a 4% jump from the intra-day low of $1.91, where support was established.
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