YEREVAN (CoinChapter.com) — The New York Department of Financial Services (NYDFS) is set to approve Ripple Labs’ RLUSD stablecoin, according to a Nov. 29 report by Fox Business. The approval could lead to the stablecoin’s launch as early as Dec. 4. RLUSD is a dollar-pegged stablecoin described as overcollateralized, designed to meet the growing demand for reliable digital payment options.
Ripple Labs announced RLUSD as part of its ecosystem expansion and plans to use it alongside XRP to improve its cross-border payment services. The NYDFS approval is a significant step in bringing this product to the market.
Ripple Approval by NYDFS. Source: XRipple Maintains Commitment to XRP Amid RLUSD Launch
When Ripple first announced RLUSD, concerns arose among XRP holders that the company might reduce its focus on the token. Ripple Labs has not confirmed any shift in its strategy. Instead, the firm has highlighted its intention to continue using XRP for liquidity in its cross-border payment network.
Ripple’s CEO, Brad Garlinghouse, reiterated in October that the stablecoin will complement existing products, enhancing settlement times and providing flexibility within the Ripple ecosystem.
RLUSD Stablecoin and Market Outlook
Ripple initially unveiled its plans for RLUSD in April 2024, with the goal of competing against major stablecoins such as USD Coin (USDC) and Tether (USDT). Ripple executives forecast a stablecoin market worth $2 trillion by 2028, emphasizing the potential for multiple issuers to operate within the growing sector.
Testing of RLUSD began in August on both the XRP Ledger and the Ethereum mainnet, with plans for expansion to additional blockchains. Ripple has also committed to conducting third-party audits of the stablecoin’s underlying assets and providing monthly reserve reports to ensure transparency.
The XRPL contract address for the stablecoin tests. Source: Ripple LabsPartnerships and Compliance
Ripple partnered with prominent exchanges such as Uphold, Bitstamp, and Bitso to drive RLUSD’s adoption. Moreover, the company operates under its New York Trust Company Charter, which ensures compliance with financial regulations. As a result, the stablecoin plays a key role in Ripple’s payment solutions, providing secure and efficient transaction options.
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