Ripple’s RLUSD stablecoin is set to launch on the mainnet after receiving approval from the New York Department of Financial Services (NYDFS). Sources close to the matter have confirmed that Ripple aims to launch on December 4, 2024. This follows the stablecoin’s initial introduction in April 2024 and its beta release in August on the XRP Ledger (XRPL) and Ethereum networks.
The NYDFS has yet to issue an official statement, but the approval signals a significant step for Ripple in its quest to expand its financial solutions. The approval may have been eased by Ripple announcing its acquisition of Standard Custody & Trust Company in June, which the NYDFS regulates. Standard Custody’s job is to supply Ripple’s exchange counterparts, such as Moonpay and Uphold, with RLUSD after the official launch.
Also Read: XRP Sees Strong Bullish Momentum, Becomes Fifth-Largest Cryptocurrency
A Stablecoin Solution Amid Regulatory Uncertainty
Ripple’s introduction of RLUSD offers financial institutions an alternative to its native token, XRP, which has faced ongoing legal challenges with the U.S. Securities and Exchange Commission (SEC). Its status remains unregulated and legal as the SEC continues to insist that XRP must be considered an unregistered security. While the recent court decision went in Ripple’s favor, the case remains in heightened limbo within the appeal process for XRP.
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RLUSD, however, is a stablecoin backed 1:1 by the U.S. dollar, offering a predictable and less volatile option for cross-border transactions. Ripple planned to bring onboard financial institutions that shy away from XRP due to its risk in the grey zones of the law, but it offers sound service for cross-border payments.
With the stablecoin market valued at $190 billion, Ripple aims to challenge established players like Tether and Circle. The NYDFS approval marks a significant milestone in Ripple’s expansion into the stablecoin space, potentially shaping the future of blockchain-based financial solutions.
Also Read: Ripple vs. SEC: Legal Expert Debunks Court Expedition Rumor
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.