- Ripple’s RLUSD stablecoin has received the final NYDFS approval for compliant operations.
- Ripple partners with major exchanges and liquidity providers for launch.
Ripple Labs has secured final approval from the New York State Department of Financial Services (NYDFS) for its RLUSD stablecoin. Ripple CEO Brad Garlinghouse announced the news on December 10, confirming that exchange and partner listings will follow shortly.
RLUSD, a stablecoin pegged to the US dollar, aims to offer compliance, transparency, and rapid adoption in the growing stablecoin market. Ripple first revealed its plans for RLUSD in April, marking a significant move in the stablecoin sector. By August, the company began testing RLUSD on the XRP Ledger and Ethereum networks. Liquidity providers B2C2 and Keyrock will support RLUSD’s rollout, ensuring smooth market integration.
RLUSD stands out with its over-collateralization model, backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. Ripple has committed to monthly third-party audits to guarantee transparency and trust. This feature positions RLUSD as a compliant alternative to existing stablecoins like Tether’s USDT and Circle’s USDC.
RLUSD Gains Traction
The approval from NYDFS allows Ripple to operate RLUSD within New York’s regulatory framework. This milestone highlights Ripple’s commitment to compliance and innovation in the cryptocurrency market. The company’s use of XRP for liquidity enhances RLUSD’s settlement speed, further boosting its appeal to institutional and retail users.
Ripple executives expect RLUSD to play a key role in the projected $2 trillion stablecoin market by 2028. According to CEO Brad Garlinghouse, RLUSD’s initial target is large institutional players. The stablecoin will integrate with Ripple’s cross-border payment solutions, leveraging XRP to drive efficiency and scalability.
The re-election of pro-crypto leaders in the U.S. and the resignation of former SEC Chair Gary Gensler signal a more favourable regulatory environment. Ripple’s focus on compliance and partnerships positions RLUSD as a strong contender in the stablecoin market.
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