- Ripple’s RLUSD stablecoin secures major licenses through Hidden Road acquisition.
- Federal Reserve integration plans aim to strengthen RLUSD’s market credibility.
- GENIUS Act boosts confidence in Ripple’s regulatory-compliant stablecoin offering.
Ripple is expanding its presence in the stablecoin market with its Ripple USD (RLUSD) token now valued at over $527 million, according to CoinMarketCap. In the past 24 hours, 10 million RLUSD tokens were minted at the RLUSD Treasury, indicating growing adoption.
With the signing of the GENIUS Act, the stablecoin industry saw a second growth boom. To prevent problems with stable coins, the new law states that stable coins should be liquid with assets such as U.S. dollars and Treasury bills.
The disclosure of reserve composition is also imposed on issuers and promotes the transparency and compliance of the market.
Ripple has also taken a stronger stance by engaging the Bank of New York Mellon as the main custodian of RLUSD reserves. The collaboration facilitates institutional quality compliance and enhances the confidence levels of traditional financial stakeholders in interacting with digital assets.
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Hidden Road Acquisition Adds Licensing Strength
Ripple has acquired Hidden Road to gain a full suite of regulatory licenses that support the issuance and operation of RLUSD. According to CoinFund President Christopher Perkins, the deal merges Hidden Road’s regulatory approvals with Bitnomial’s distribution strength.
The licenses cover Derivatives Clearing Organizations, Designated Contract Markets, Futures Commission Merchants, and broker-dealer activities. This enables Ripple to serve in various financial sectors without being costly to the regulatory requirements.
Blockchain lawyer John E. Deaton claimed that the acquisition is a bright indication of the merging of traditional finance with cryptosystems. Ripple CEO Brad Garlinghouse announced that the RLUSD token is now accepted as collateral in all Hidden Road services, which increases its application.
Ripple Targets Federal Reserve Access and Banking Charter
Ripple is pursuing a national banking charter and has submitted a request for a Federal Reserve Master account through Standard Custody. These measures would enable the holding of RLUSD reserves in the Federal Reserve, eliminating third-party exposure.
The action indicates enhanced institutional integration and a higher degree of reserve transparency. Garlinghouse also attributed the initiative to a shift in the banking mindset, and most banks are now receptive to working together in clear-cut regulation environments.
Precision is also cross-margin trading, which means that RLUSD can act as security in both digital and traditional assets. This elasticity, together with the straightforwardness of regulations regarding crypto-based money, makes RLUSDF an eventual mediator between crypto and traditional monetary resources.
Conclusion
Ripple’s acquisition of Hidden Road, Federal Reserve integration efforts, and increasing institutional trust reflect its growing role in regulated stablecoin operations. RLUSD continues to position itself as a compliant and versatile asset in global finance.
Also Read: Mastercard Moves Fast as Trump Signs GENIUS Act Into Law
