New York regulators ready to greenlight Ripple’s RLUSD stablecoin

Ripple Labs’ RLUSD stablecoin, an over-collateralized digital currency pegged to the U.S. dollar, is close to receiving approval from the New York Department of Financial Services (NYDFS), Fox Business reported Nov. 29. The milestone could pave the way for the stablecoin to launch as early as Dec. 4, marking Ripple’s latest venture into the fast-growing stablecoin market.

Ripple first announced the launch of RLUSD in April 2024 as a competitor to USD Coin (USDC) and Tether (USDT), emphasizing trust, stability, and practicality. The company plans to integrate RLUSD into its cross-border payment solutions along with XRP, aiming to increase global liquidity and settlement speed. Ripple executives expect the stablecoin market to reach $2 trillion by 2028, which brings huge business opportunities to multiple issuers.

Expanding the Ecosystem

Ripple has begun testing RLUSD on the XRP Ledger and Ethereum mainnet, and plans to expand to other blockchains. To ensure transparency and compliance, Ripple has committed to third-party audits and monthly collateral reserve reports. Major exchanges including Bitstamp, Uphold, and MoonPay will also support the stablecoin.

Ripple CEO Brad Garlinghouse reiterated the company’s strategy to use XRP to increase liquidity for RLUSD while abiding by the strict regulatory standards set by the New York Trust Company’s charter. Despite speculation that Ripple will pivot from XRP to RLUSD, Ripple reaffirmed its commitment to keeping its flagship token as a core component of its ecosystem.

The expected NYDFS approval will allow Ripple to strengthen its role in the stablecoin market, potentially reshaping cross-border payment systems. RLUSD’s compliance-focused approach and integration with existing Ripple products could provide a competitive advantage, especially as the stablecoin market continues to expand.

The upcoming launch of RLUSD not only solidifies Ripple’s foothold in the digital finance space, but also highlights the growing recognition of blockchain-based financial solutions by U.S. regulators.

Meanwhile, XRP whales moved 140 million coins as the Ripple-SEC lawsuit draws to a close.