New York Regulator Set to Approve Ripple’s RLUSD Stablecoin

Ripple Labs is on the verge of receiving approval from the New York Department of Financial Services (NYDFS) for its RLUSD stablecoin, according to sources cited in a Nov. 29 report by Fox Business. The stablecoin, which is pegged to the U.S. dollar and overcollateralized, could launch as soon as December 4.

The move marks a significant step for Ripple as it expands its product offerings. In a statement from August, Ripple emphasized the demand for stablecoins that combine trust, stability, and utility. Once RLUSD is live, Ripple plans to integrate it alongside XRP in its cross-border payment solutions, aimed at enhancing global transactions and improving customer experience.

While some XRP holders initially feared that Ripple might shift its focus entirely to RLUSD, the company has clarified that it does not intend to abandon XRP in favor of the stablecoin. Ripple continues to commit to using both assets within its ecosystem.

Ripple’s Vision for RLUSD and the Stablecoin Market

Ripple first revealed plans for RLUSD in April 2024, positioning the stablecoin to compete with established players like USD Coin (USDC) and Tether (USDT). The company forecasts that the stablecoin market could reach a capitalization of $2 trillion by 2028, highlighting the potential for multiple issuers to secure a share of this growing market.

Ripple has already begun testing RLUSD on both the XRP Ledger and the Ethereum mainnet. The company also intends to expand the stablecoin to other blockchains, although specific details on timing remain undisclosed.

Transparency and Compliance

In line with regulatory expectations, Ripple has promised to conduct regular third-party audits to ensure the cash and short-term cash equivalents backing RLUSD are properly accounted for. Monthly reports on the collateral reserves will be provided to maintain transparency.

Ripple has also announced several exchange partners for RLUSD, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Ripple CEO Brad Garlinghouse reiterated the company’s commitment to utilizing XRP to boost liquidity for RLUSD and facilitate faster settlement times.

The company remains focused on complying with all regulatory requirements under its New York Trust Company Charter as it prepares for the stablecoin’s upcoming launch.