Ripple is on the brink of launching its regulated stablecoin, RLUSD, with approval from the New York Department of Financial Services (NYDFS) expected soon.
According to FOX Business reports, the company has tentatively planned a December 4 launch. This will mark a significant step in Ripple’s expansion into New York’s tightly regulated digital finance space.
Ripple’s Stablecoin Could Provide a Regulated Entry to the US Crypto Market
Ripple’s entry into the stablecoin market places it in direct competition with established US issuers such as Circle, Paxos, and Gemini.
If finalized, the approval will allow Ripple to offer RLUSD as a stable and regulated digital currency alternative to XRP. This could appeal to customers seeking to avoid volatility and regulatory challenges associated with other cryptocurrencies.
Meanwhile, New York remains a critical market for stablecoin issuers. The state has maintained a regulatory framework for these assets. The NYDFS imposes stringent requirements, including transparency, security, and consumer protection standards.
“XRP, 1,000 times faster and 1,000 times cheaper than Bitcoin, when paired with Ripple’s soon to be released RLUSD Stablecoin, a tool our US Treasury recently deemed a vital liquidity product backed by US Treasury Bills, America and the world dodges economic chaos & destruction,” Rob Cunningham wrote on X (formerly Twitter).
Companies like Ripple often pursue limited-purpose trust charters to offer digital asset services without the extensive oversight faced by traditional banks. Others, such as Coinbase and Robinhood, operate under New York’s BitLicense to facilitate crypto trading and custody services.
Also, Ripple’s stablecoin launch will involve partnerships with payment providers such as Bitstamp, Moonpay, and Uphold. This will ensure broad accessibility for users once the product goes live.
“RLUSD will only be on XRP Ledger and won’t be multichain. It is intended for bank office institutional settlement and will compete with USDT/USDC for cross-border payments,” influencer Martin Folb wrote on X (formerly Twitter).
XRP’s Market Surge Reflects Growing Optimism
Ripple’s XRP token recently surpassed BNB to become the fifth-largest cryptocurrency by market capitalization. Earlier today, the altcoin crossed $100 billion for the first time in over three years.
Overall, November has seen XRP’s value climb by more than 230%. This was largely driven by increased investor confidence and the ongoing bullish momentum across the market.
The resignation of SEC Chair Gary Gensler earlier this month has added to the bullish sentiment surrounding Ripple. Gensler’s departure has fueled speculation that Ripple could see reduced regulatory pressure from the SEC, which has historically targeted the company.
Institutional interest in XRP is also rising. Last week, WisdomTree filed an application for an XRP ETF in Delaware. This was the third such application after similar filings by Bitwise and Canary Capital in October.
The post New York Regulator To Approve Ripple’s Stablecoin On December 4th appeared first on BeInCrypto.
