NY Regulator Set to Approve Ripple’s RLUSD Stablecoin, Dec. 4 Launch Looms

Highlights:

• Ripple’s RLUSD stablecoin approval from NYDFS will boost its digital finance role.
• Ripple aims to challenge stablecoin leaders like USDC and USDT with RLUSD.
• XRP price surges as market sentiment improves.

Ripple Labs, the company behind XRP, is set to receive approval from New York’s Department of Financial Services (NYDFS) for its dollar-backed stablecoin, RLUSD, according to a recent Fox Business report. The regulatory approval will enable Ripple to be a major player in NY’s broader stablecoin ecosystem and regulated digital finance market.

The report suggests that the NYDFS is preparing to approve Ripple’s RLUSD, with the company planning its launch for December 4. Ripple operates RippleNet, a global payment network that leverages blockchain technology to offer cross-border payment solutions for banks and businesses, serving as an alternative to SWIFT. While the firm’s native token, XRP, acts as a bridge currency for transactions but remains unregulated in the United States.

🚨BREAKING: RIPPLE TO HAVE FINAL GREEN LIGHT FROM THE NEW YORK DEPARTMENT OF FINANCIAL SERVICES TO FORMALLY LAUNCH #RLUSD!

A STABLECOIN BUILT ON THE #XRP LEDGER THAT WILL BURN XRP WITH EACH TRANSACTION! pic.twitter.com/uLkfxsGrg3

— CryptoGeek (@CryptoGeekNews) November 29, 2024

Ripple announced plans for the RLUSD stablecoin in April this year. The announcement raised concerns among XRP holders, who feared Ripple might focus more on its new stablecoin. However, Ripple has clarified that it intends for RLUSD to complement, not replace, XRP within its growing portfolio.

Ripple plans to launch RLUSD as more than a typical stablecoin. It’s the company’s strategy to address the legal challenges tied to XRP. The Ripple’s token is volatile, while stablecoins offer much-needed stability.

Earlier this year, Ripple bought Standard Custody & Trust Company, helping it to meet strict NYDFS rules for RLUSD. It aims to compete with USD Coin (USDC) and Tether (USDT). The company’s executives predict the stablecoin market could reach $2 trillion by 2028. 

Ripple to Compete with Top Stablecoin Players

Ripple will compete with established players like Circle, Paxos, and Gemini. They’re also partnering with big names like Moonpay and Bitstamp for the launch. Moonpay’s Keith Grossman thinks this is a great move for the whole stablecoin industry. The NYDFS approval is a big deal, as it will expand RLUSD’s reach and give users greater access to payments and remittances.

In August, Ripple Labs stated:

“There is a clear demand for stablecoins that deliver trust, stability, and utility. Once RLUSD is available, Ripple will use both RLUSD and XRP in its cross-border payments solution to serve its global customers and dramatically improve their experience.”

XRP Surpasses BNB in a Remarkable Market Rally

XRP has climbed to become the fifth-largest cryptocurrency by market cap, surpassing Binance Coin (BNB). This comes after a tough 2020 when the SEC’s lawsuit caused a 50% drop in XRP’s price. Since then, XRP has made a strong comeback, surging over 230% in November and currently trading at $1.89. Its market cap has now reached $100 billion.

🚨 $XRP flipped $BNB to become the 5th largest cryptocurrency by market cap. pic.twitter.com/lj7272qhfI

— CoinGecko (@coingecko) November 29, 2024

XRP recently surged following Donald Trump’s election win. He pledges to simplify crypto regulation and make the US the “crypto capital” that drove the rise. Further gains were driven by the announcement of SEC Chair Gary Gensler’s departure.

XRP holders see this as a positive shift, hoping for a more crypto-friendly replacement under Trump. Moreover, Trump’s team might appoint a former Commodity Futures Trading Commission (CFTC) chair to lead the regulatory changes. This could result in the SEC dropping its case against Ripple. Institutional interest in XRP is growing. Last week, WisdomTree submitted an application for an XRP ETF in Delaware, marking the third such filing after Canary Capital and Bitwise’s applications in October.