Ripple, a leading blockchain-based payment solution, has achieved a significant milestone with the final approval from the New York Department of Financial Services (NYDFS) to launch its much-anticipated stablecoin RLUSD.
RLUSD is a stablecoin that aims to preserve a 1:1 value with the US Dollar, like widely used stablecoins such as USDT and USDC.
NYDFS Approves Ripple’s RLUSD
The NYDFS, known for its thorough regulatory framework, has granted Ripple the green light to issue its USD-backed stablecoin. The approval process involved rigorous assessments of Ripple’s compliance with anti-money laundering (AML) measures, consumer protection policies, and financial obligations.
Ripple’s CEO, Brad Garlinghouse, also expressed his enthusiasm on X about the approval by noting that when RUSD is live, the world will hear it first from Ripple.
Garlinghouse initially signaled Ripple’s plans to enter the stablecoin arena, dominated mainly by Tether and Circle mid-2024, suggesting that evolving political landscapes could pave the way for new players like Ripple.
By August, testing for RLUSD was in progress on Ethereum and the XRP Ledger. Later in October, Ripple announced that RLUSD would soon be accessible on platforms such as Uphold, Bitstamp, and Bullish.
The firm further noted that RLUSD combines the stability of conventional fiat currencies with the speed and efficiency of blockchain technology, making it well-suited for various financial applications.
Development of RLUSD slowed briefly as Ripple worked with regulators to ensure its stablecoin met compliance standards. On December 6, Ripple’s CTO, David Schwartz, noted that RLUSD was expected to go live before the end of the year, just 21 days from the time of reporting.
XRP Sees Uptick in Price
Following the announcement, XRP, Ripple’s native token, saw a notable uptick in its price, signaling positive investor sentiment. Market analysts believe the stablecoin launch could further solidify Ripple’s position as a dominant player in the blockchain and fintech sectors.
The crypto asset was down 11% in the past week. However, XRP has increased 5.91% in the last 24 hours, ranking as the fourth largest cryptocurrency after Tether USDT.
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