- RLUSD stablecoin is not launching yet as NYDFS approval has not been confirmed.
- Ripple Labs has made progress toward securing approval through consistent RLUSD testing.
Crypto payments firm Ripple Labs has issued an official statement regarding the launch date of its RLUSD stablecoin. Numerous reports claimed Ripple ought to launch the highly anticipated RLUSD on Wednesday, December 4, 2024.
Ripple Not Yet Launching RLUSD Stablecoin
In an X post, Ripple refuted the ongoing speculations, stating that it has not yet gotten final regulatory approval. However, Ripple disclosed that it is in discussion with the New York Department of Financial Services (NYDFS) to get that done.
Upon receiving the final approval from NYDFS, Ripple will launch the RLUSD for the public. The company’s decision emphasizes its commitment to upholding the highest regulatory standards in the stablecoin ecosystem, positioning the firm as a key participant in the broader stablecoin ecosystem and New York’s regulated digital finance market.
The NYDFS is renowned for its strict stance on crypto regulation. The agency ensures that companies intending to offer digital assets within its jurisdiction meet high regulatory standards. These include, but are not limited to, fulfilling transparency, security, and consumer protection requirements.
Ripple must secure a limited-purpose trust charter from the NYDFS to offer RLUSD in New York. This approval would eliminate the more complex regulatory requirements of a traditional bank.
Notably, Ripple’s latest statement comes shortly after Fox Business reporter Eleanor Terrett claimed the RLUSD stablecoin would launch on December 4. In a report, Terrett cited people familiar with the matter who said the NYDFS signaled intentions to approve the RLUSD launch.
Following Ripple’s official statement, Terrett said the post affirms her previous reporting that the NYDFS is ready to approve RLUSD for launch. According to her, some unforeseen developments pushed the timeline for the December 4 release of the stablecoin to a later date.
Ripple’s Strategy for the RLUSD Launch
With no precise date for a mainnet launch, RLUSD is still in beta testing. Recall that Ripple introduced the stablecoin in June 2024, emphasizing that the asset is backed in a 1:1 ratio with the US dollar. Subsequently, CNF reported that Ripple proceeded with the beta launch in August, rolling out the stablecoin on XRP Ledger and Ethereum.
Upon launching the mainnet, RLUSD would act as a store of value for those looking for a hedge against the crypto market’s volatility. The stablecoin will also function alongside XRP as a bridge currency between two fiats on Ripple’s payment solution.
Financial institutions worried about using XRP during regulatory uncertainties surrounding the asset can choose RLUSD. However, Ripple’s commitment to getting regulatory approval for the stablecoin has slowed its mainnet launch.
Still, the firm has made substantial progress in obtaining a limited-purpose trust charter as mandated by the NYDFS. In June, Ripple purchased Standard Custody & Trust Company, a limited-purpose trust business chartered by the New York financial regulator. According to sources, this step has positioned RLUSD for future approval.
Once Ripple eventually launches RLUSD following the potential approval, Standard Custody will distribute the stablecoin to its exchange partners, including Uphold and Bitstamp.
